International law firm Trowers & Hamlins has advised on a joint venture between the Hyde Group and L&G to establish a new investment partnership focused on the delivery of affordable housing across the UK.
The joint venture brings together two of the UK’s leading investors in housing: L&G, a major UK insurer, pension scheme manager and affordable housing investor that has invested over £1bn through its L&G Affordable Homes business, and Hyde, a not-for-profit provider of housing, property and community services that owns or manages 125,000 homes.
The 50/50 partnership will launch with a seed portfolio of over 1,000 homes, comprising social rent and shared ownership, with scope for further joint investment. The homes are being acquired by two existing For-Profit Registered Providers (FPRPs), Halesworth Limited and Lanecroft Homes Limited, which are jointly owned by Hyde Group and L&G.
The partnership will be jointly equity financed by Hyde and L&G and supported through L&G’s annuity portfolio, which invests in long-term, income-generating assets aligned with pension liabilities. The structure enables institutional capital to support the delivery of affordable housing, while contributing to regional regeneration and long-term economic growth.
Trowers advised L&G on the social housing regulatory aspects of the transaction and the joint venture registered providers, Halesworth Limited and Lanecroft Homes Limited, on their acquisition of the seed portfolio.
Jeremy Hunt and Hannah Jackson led on the property acquisition, with Rob Beiley leading on governance and regulation. They were supported by a multi-disciplinary team including Emma Kirby, Anna Streeter and Sam Hopkins (Real Estate); Katie Saunders and Andrea Leigh (Construction); Josh Partridge and Ryan Naidoo (Energy and Sustainability); Natalie Singh (Banking and Finance); Will Sargeant (Real Estate Finance); and Nathan Williams (Tax).
Rob Beiley, Real Estate Partner, comments:
"Institutional investment is of ever-increasing importance to the delivery of new affordable housing, and this is a genuinely groundbreaking project that demonstrates how new sources of capital can work alongside traditional housing associations to deliver a step-change in delivery. We are pleased to have advised on a transaction that brings together investment and sector expertise to support long-term, sustainable housing provision."
Jeremy Hunt, Real Estate Partner, added:
"The transfer of portfolios of housing to institutionally backed registered providers represents an important way for housing associations to re-capitalise their balance sheets and we were pleased to bring our expertise to this complex and pioneering transaction."
