Lawrence Graham LLP has acted for QSH (Quality Social Housing Management Limited) on the establishment of QSH and the investment into QSH by Wates Living Space, part of the Wates Group. QSH has been set up to arrange and manage investments into social and affordable housing.

On 20 May QSH signed its first deal involving a 30 year management agreement with a UK Local Authority using investment from the Measom Group.  The properties will be leased to tenants at an affordable rent, without any government subsidy, and will be managed by an arms-length management company which manages 23,500 homes on behalf of the Local Authority.

This is the first deal in a potential investment by QSH in up to £320 million of social and affordable housing through management agreements with Local Authorities and Housing Associations and by raising funds from institutional and private equity investors.

This innovative project establishes a model whereby any UK Local Authority or Housing Association can acquire access to social and affordable housing without government subsidy and whilst complying with government-imposed borrowing criteria.

The team at Lawrence Graham consisted of partners Elliot Weston and Huw Baker, senior associate Rebecca Gordon and associate Amy Pilmer.  Wates Living Space was advised by Pinsent Masons partner Mark Job and associate Fiona Johnston.

Elliot Weston said "We are delighted to have assisted QSH on the establishment of a platform to bring together local authorities and housing associations that need to provide social and affordable housing, with private capital and institutional investors looking for long-term RPI-linked returns.  We look forward to working with QSH in the future to grow the platform, potentially with a view to forming a real estate investment trust."

Lawrence Graham also advised recently on the UK's first residential real estate investment trust (REIT) which will invest in student accommodation.  It began trading on 20 May, with the placing and offer oversubscribed, having raised total gross proceeds of £70m.  Indirect real estate is one of the firm's key strengths combining its long established skills in corporate, investment funds, real estate and tax.