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Trowers & Hamlins advises Adactus Housing in securing £25m long-term borrowing

Trowers & Hamlins advises Adactus Housing in securing £25m long-term borrowing

Trowers & Hamlins is delighted to have acted for regional housing association Adactus Housing Group in securing £25m long-term borrowing from Legal & General.  The loan to Adactus is the sixth direct investment deal by Legal & General in the social housing sector and the first of its kind in the North West.

Trowers & Hamlins' Banking and Finance team agreed the 40-year loan in a tight timeframe, allowing Adactus to lock in the benefit of current pricing, whilst simultaneously putting a security structure in place suitable for future funding.  The 40-year loan, to be secured against a portfolio of existing assets, will be used to refinance a short-term loan that is maturing this year, as well as to provide Adactus with further capital to support its development pipeline.  As part of the financing, security trust arrangements were also put in place that will allow the housing association to charge security for future funding needs.

Paul Chisnell, group director of finance at Adactus, said:  "This loan reflects a significant step forward for us.  This is not purely a financial transaction, but the commencement of a partnership between two organisations with a shared vision for bringing about real improvements to the UK’s housing market.  Trowers & Hamlins' close understanding of registered providers and the market for long-term finance in the housing sector allowed us to conclude the deal at a rapid pace whilst being guided on all the issues that were important to us."

This was the second deal acting for housing associations on the other side of Legal & General that Trowers & Hamlins' Banking and Finance team has been involved in in recent months, having previously been instructed by Housing Solutions on their £50m debt facility with Legal & General secured against existing assets.  The loan, made through the group's treasury vehicle and on-lent to Housing Solutions Limited, was for general working capital purposes.

Partner Neil Waller led the Banking and Finance team that advised Adactus with assistance from solicitor Dale Moulden.

Commenting on the Adactus deal, Neil Waller said:  "This is one of an increasing number of long-term funding products we are seeing made available to borrowers in the social housing market which we have been advising our clients on.  We are particularly pleased to see that such funding is being made available to social housing providers in the North West."