Four Welsh landlords complete £68m refinancing of second funding vehicle

WHP2 is the partnership’s second vehicle, formed in 2016 after WHP1 closed to new acquisitions. It owns 573 properties across Wales, which have been leased to the social landlords and then to tenants.

“The structure is leveraged and capital efficient, increasing the supply of much-needed low-cost homes without consuming the inherent investment capacity of the partners,” the WHP said.

“Risk has been reduced, whilst negotiated covenants ensure the vehicle’s efficiency.”

Financial advisory firm Centrus acted as advisor and arranger, from the initial funding strategy to arranging the private placement. HA Financial Solutions also supported the work, as WHP2 does not employ staff directly.

Law firm Devonshires was counsel for WHP2, Addleshaw Goddard acted for PPF and Capital Law acted for the Welsh government. The transaction completed on 31 May.

“The WHP concept is a great example of collaboration in the Welsh housing sector enabling the supply of much-needed affordable housing,” said Simon Jones, chair of WHP2.

“Across the two WHP vehicles, over 1,500 homes have been available to working people in housing need across Wales that wouldn’t have otherwise been there.

“Whilst the structure is by nature complex and leveraged, the refinancing now complete stabilises the WHP2 financial profile, reducing costs to the partners, whilst ensuring these homes are available for the longer term,” he added.  

The Welsh housing sector has seen a number of refinances recently, including Tai Tarian’s £95m refinancing package that was agreed with three new lenders.