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Council secures £58m long-term financing package to acquire 200 affordable homes
Bromley Council and property management firm Pinnacle Group have secured a £58m long-term financing package to support the acquisition of more than 200 affordable homes.
The package features a 55-year inflation-linked loan. It was arranged by Macquarie Asset Management and provided by Phoenix Group, the UK’s largest long-term savings and retirement business.
The acquired properties have been earmarked to house those currently homeless or in temporary accommodation.
Yvonne Bear, executive councillor for renewal, recreation and housing at Bromley Council, said: “We are increasing local affordable housing supply, including by building houses as part of our Bromley Homes for Bromley People initiative and by working with partners on acquisitions.
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“We are pleased the financial arrangement from Phoenix Group and Macquarie Asset Management for this joint venture with Pinnacle has been agreed, which delivers more affordable homes for families and also reduces the need for temporary accommodation and high costs associated with this.”
Oliver Swallow, investment manager at Phoenix Group, said: “The housing crisis continues to be one of the most prevalent challenges that we face across the UK, and we are pleased that our investment to support the London Borough of Bromley will help those who are at risk of less secure or unaffordable housing.
“Phoenix is committed to help support the levelling up across the whole of the UK, by continuing to invest in quality homes.”
Gareth Edwards, senior vice president at Macquarie Asset Management, said: “The current demand for housing has placed tremendous pressure on local communities and councils.
“The numbers of those facing homelessness or housed in temporary accommodation have prompted local authorities to look at ways to increase housing supply, with councils seeking alternative solutions to meet their housing needs.
“With more than £1bn invested on behalf of our clients in this sector to date, this latest agreement demonstrates our ongoing commitment to helping local authorities address the housing shortfall impacting the most vulnerable members of our society.”
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