Trowers & Hamlins advises on £95 million private placement for Community Gateway
International law firm Trowers & Hamlins has advised Community Gateway Association Limited (CGA) on the completion of a debut £95 million private placement.
The placement incorporates two new investors at extremely competitive rates, allowing them to diversify their funding structure and refinance part of their loan facilities with their sole bank lender.
This is the latest step in CGA’s financial strategy, which saw Savills Financial Consultants advise the Preston-based housing provider on a financial restructure in 2018 to increase its financial capacity and remove restrictive loan covenants.
CGA was formed in 2005 from the stock transfer of homes from Preston City Council. It was established using the community gateway model to ensure local people influence the strategy and work of CGA.
Craig Garner, Executive Director of Resources at Community Gateway Association, said: “This is a significant milestone for Community Gateway Association. We are delighted to have secured this investment, which will enable us to drive forward our ambitious development programme to build a range of high quality, modern homes that meet the needs of residents across Preston and beyond. We would like to thank our partners who supported us over recent months to achieve this outcome.”
Trowers partner, Neil Waller who led on the deal said:
"We are very pleased to have supported Community Gateway in achieving this fantastic result, which lays the foundation for their long-term financing needs for many years to come."
Trowers' Manchester banking team advised on all aspects of the financing work, including production of the note purchase agreement and liaising with Morrison and Foerster as US counsel. The team was led by partner, Neil Waller, with support from associate, Abigail Sowden and Ashley Slatford, paralegal.
The firm's Manchester Real Estate Finance Security Team also advised on all related property security aspects of the deal, carrying out due diligence on over 5,500 properties. The team was led by property security partner Melanie Comer, with senior associate Lauren Mason-Smith and new partner Jo Judge assisting.
The team worked closely with Savills Financial Consultants as treasury advisers and Community Gateway's property and finance teams to arrange the property split in a way which would maximise the number of units to achieve an uplift in value to MV-T.