Trowers & Hamlins has advised long-standing client Aviva Investors on its latest deals to fund 395 affordable homes. The £30 million tranche of funding will see 217 residential properties funded in South Yorkshire for Alliance Housing Limited (a newly founded subsidiary of South Yorkshire Housing Association) and 178 residential properties in Oxfordshire for GreenSquare Community Homes Limited (a subsidiary of GreenSquare Group Limited).
The transaction by the Aviva Investors REaLM Social Housing Fund, part of the Aviva Investors Returns Enhancing and Liability Matching (REaLM) fund range, represents the fund’s first deal with Alliance Homes and third with GreenSquare. It brings the total investment to date to over £130 million.
Trowers & Hamlins has advised the Aviva Investors REaLM Social Housing Fund on all of its investments since the fund range was launched in July 2011 to invest in specialist real estate and infrastructure-related assets that provide secure, long-term, inflation linked income streams.
Jeremy Hunt, Housing and Regeneration partner who led on the transactions, commented: "It is a great pleasure to have acted for Aviva Investors on this latest deal and all of the REaLM Social Housing Fund investments so far. This fund is an example of the strong trend we are seeing of investors looking to different kinds of residential property to diversify their portfolios. There are significant opportunities out there for other funds to invest in affordable housing."
The Aviva Investors REaLM Social Housing Fund invests in high-quality UK residential property that is let on long-term leases to registered providers and local authorities, providing a strong match for investors’ income requirements. Approved by the Homes and Communities Agency, REaLM is a real-estate based, fully amortising financing solution with low initial yield and no refinancing risk. Developed with a housing association, for housing associations, it builds on Aviva Investors strong understanding of real estate to deliver asset management focused funding.
