Trowers & Hamlins has advised Chorley Community Housing (CCH), a subsidiary of Adactus Housing Group, on securing a £50m loan from Legal & General (L&G). The loan will fund a pipeline of 814 new homes over the next three years in the North West of England.
Trowers & Hamlins is delighted to have advised Chorley Community Housing (CCH), a subsidiary of Adactus Housing Group, on securing a £50m loan from Legal & General (L&G). The loan will fund a pipeline of 814 new homes over the next three years in the North West of England.
The loan facilities are secured against a mixture of existing properties and development sites. This is highly unusual for Registered Providers, involves an innovative security structure, and allows CCH to forward fund its affordable homes programme for the next three years.
Paul Chisnell, Group Director of Finance at Adactus Housing Group, commented: "Trowers & Hamlins worked collaboratively with L&G and their advisers in putting together a legal framework that meets L&G's requirements whilst being flexible enough to accommodate our existing development pipeline, all within tight timescales."
Partner Neil Waller led the Banking and Finance team that advised CCH with assistance from Dale Moulden (Banking and Finance), Melanie Comer and Nicola Jones (Property Charging) and David Vayro (Projects and Construction).
Commenting on the Adactus deal, Neil Waller said: "We are very pleased to have worked with Adactus and L&G in putting this novel financing structure into place. It allows CCH to raise finance secured against their future development programme but without the complexity of traditional development finance."
This is the second time that Trowers & Hamlins has advised Adactus on a financing transaction concluded with L&G, the first one being a £25 million, 40-year loan which completed in July 2014.
In addition to the loan deal with Legal & General, the firm's Banking and Finance team also advised CCH on the simultaneous restructure of their existing bank facilities with Santander.
