Social Housing Finance
For over 30 years, our team has focused on financing many of the most innovative, impactful, and pioneering social housing finance transactions.
We are proud to be the top ranked firm acting for funders in social housing according to the Legal 500 and Chambers & Partners Independent directories.
Our team contains over 50 experts in this field and we are the only firm whose senior associates feature in the Rising Star category in Legal 500; demonstrating our unparalleled strength in depth.
All of our senior team members are leading experts in the sector, often advising at the cutting edge of deals and structures as well as on legislative developments. This reputation has been built and maintained upon a team ethos of being proactive, friendly, accessible and commercial, rather than taking an adversarial approach.
Across all of our experts, we’re incredibly passionate about the hugely positive social impact of the work which we undertake alongside our clients.
We will ensure your deal is progressing as planned by bringing in all the experts you need to provide concise and user-friendly technical advice, which has been tailored to meet your specific requirements, within a sector that is rapidly evolving. All of which are just some of the reasons why we are known as trusted advisers, helping to solve problems and develop valuable solutions.
How can AG help
- General social housing financings and refinancings (including non-profit and for-profit housing associations, and LSVTs)
- Sustainability-linked, green and social loans to housing associations
- Group structures/group financing structures
- Social housing projects, including PFI/PPP schemes
- Key worker, market rented and other diversified accommodation projects
- Social housing loan portfolio transfers
- Syndications and participations
Examples of Work
Standout SLL Deal
We acted for eleven funders on the transition of existing financing arrangements with London & Quadrant Housing Trust (L&Q) into sustainability-linked loans (SLL). Margin discounts were offered to L&Q, conditional upon details reporting and verification requirements – the sector’s standout SLL deal of the year, given the size of the debt and number of funders.
Unsecured Deal of the Year
We acted for NatWest Structured Finance as Document Co-ordinator and Joint ESG Co-ordinator (with Barclays Bank) on the new £900m eight funder syndicated unsecured facility to Places for People Treasury (PfP). The new cross-border syndicated facility agreement replaced seven existing bilateral facilities between the relevant funders and PfP.
Green Loan
We acted for Barclays in connection with £50m green loan facilities to Vivid Housing Limited - the first green loan arranged by Barclays with a UK housing association and we understand that it is also the first in the social housing sector. The agreement was compliant with both the LMA Green Loan Principles and the Climate Bonds Standards and attracted a reduced margin to reflect the 'green' nature of the debt.
Complex Treasury Vehicle Restructuring
We acted for each of Barclays and RBS on the restructuring of complex treasury vehicle facility agreements of c. £200m with ForCapital Limited (treasury vehicle borrower) and ForHousing Limited (guarantor and obligor) and associated property security and cross guarantee work. These were sustainability-linked loan agreements with Margin reductions applying where the Guarantor meets targets based on ESG KPIs.
Mega Merger
We acted for all 11 funders and M&G Trustee Company Limited as bond trustee and security trustee in relation to the merger of Optivo and Southern Housing Group and the refinance of c£.2.3bn existing loan and ISDA documentation and associated property security work. The merger created 'Southern Housing' (a registered provider which owns around 77,000 homes and will serve 167,000 residents across London, the South East, the Midlands and the Isle of Wight). The transaction is one of the largest refinances in the social housing sector to date, and the sector's standout merger deal this year. We advised all funders on all aspects of the refinancing including advice on the necessary consents under their existing funding agreements and the refinance/amendment of existing facilities and ISDA agreements. We also advised on all property security aspects relating to c. 23,500 residential properties.
£1 Billion Note Programme
We represented ABN AMRO, Santander, Bank of China, Barclays Bank, BNP Paribas, HSBC , Lloyds Bank Corporate Markets , MUFG, Natwest, RBC and SMBC with regard to the establishment of a £1 billion Note Programme by Peabody. This stands as one of the largest and most significant secured note programmes in the social housing sector. In addition the entire £1 Billion of assets were secured on Day 1 meaning any issuance can be given at a timeframe that suits Peabody. The timeframe for this transaction was another factor with all work successfully conducted within the required 3 month timeframe.
Sector leading firm and individuals. Addleshaws goes above and beyond in terms of adding value, not just to individual transactions, but also the ongoing relationship.
A really strong and market-leading team with very strong expertise in social housing finance. A very strong bench of highly experienced legal professionals and sustainability expertise.
They are trusted advisers, helping us solve problems and develop valuable solutions.
Key Contacts
United Kingdom
Leeds, UK
London
London