Financing 368 homes for temporary accommodation in Westminster
Westminster City Council acquired a portfolio of 368 homes to provide much-needed temporary accommodation in the city, supported by a £235 million loan from Phoenix Life Limited.
The acquisition used an innovative Credit Tenant Lease funding structure, enabling the Council to pay for the properties over a 42-year term, with a guarantee from the Council in favour of Phoenix Life. The funding also included an additional sum to support improvements to the properties and help achieve an EPC C rating by 2030.
We advised the Council on both the financing arrangements and the acquisition of the A2Dominion property portfolio. Our work included advising on the purchase agreement, property due diligence and the Credit Tenant Lease, together with advice on vires and public subsidy.
The matter brought together our Banking and Finance, Real Estate and Governance teams, providing the Council with coordinated advice across the different elements of the transaction.
The funding structure helped Westminster City Council secure and improve these housing assets for the long-term benefit of residents, protecting the supply of quality temporary accommodation in the city while reducing its reliance on nightly booked accommodation.
Innovative funding structure
A Credit Tenant Lease structure enabled Westminster City Council to acquire the portfolio through long-term funding arrangements.
Cross-practice advice
Our Banking and Finance, Real Estate and Governance teams worked together across the financing and property acquisition.
Long-term housing supply
The transaction helped the Council secure and improve 368 homes for temporary accommodation in Westminster.
Supporting Westminster's long-term housing needs
Our Approach
A funding structure designed for long-term housing need
Westminster City Council acquired the portfolio using a Credit Tenant Lease structure, enabling it to pay for the properties over a 42-year term.
We advised on the financing arrangements with Phoenix Life and the acquisition of the A2Dominion property portfolio, including the purchase agreement, property due diligence and Credit Tenant Lease. We also advised on vires and public subsidy.
Bringing together our Banking and Finance, Real Estate and Governance specialists meant the Council received coordinated advice across the different elements of the transaction.
The structure helped the Council secure and improve much-needed temporary accommodation while reducing its reliance on nightly booked accommodation.
