Trowers & Hamlins advises Aviva Investors on quartet of affordable homes deals worth £89 million
The latest deal, announced in early February, saw Aviva Investors commit funding to 212 residential properties in the South of England for GreenSquare Community Housing. Together with Jamie Davey of Aviva's in-house legal team, Trowers & Hamlins developed the documentation to enable the Aviva Investors REaLM Social Housing fund, part of the Aviva Investors Returns Enhancing and Liability Matching (REaLM) fund range, to complete the transaction, which is worth £19 million under a 48-year lease and leaseback arrangement.
The GreenSquare transaction follows three earlier acquisitions by Aviva Investors completed with Derwent Housing Association Limited in the East Midlands between August 2011 and February 2013 and totalling £70 million. Trowers & Hamlins also advised on these three matters, and the Derwent Housing acquisitions, together with the GreenSquare deal, bring the total now invested by the fund to £89 million.
Trowers & Hamlins acts as legal advisers to the Aviva Investors REaLM Social Housing fund, which was launched in July 2011 as part of the Aviva Investors REaLM fund range to invest in specialist real estate and infrastructure-related assets that provide secure, long-term, inflation linked income streams. It aims to help institutional investors, particularly UK pension funds, address the challenges they face in matching liabilities and capturing income in a low-yield environment. 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.
The Trowers & Hamlins team was led by Housing Projects partner Jeremy Hunt with support from senior associate Julian Keith.
Jeremy Hunt commented: "We are delighted to have acted for Aviva Investors on these four transactions, all of which have helped not only provide much needed funding to affordable housing providers, but also created secure investments for the pension fund."
Anthony Collins Solicitors acted for GreenSquare Community Housing and Derwent Housing Association Limited on all the acquisitions.