Macquarie Asset Management has provided £235 million in long-term financing to Westminster City Council, facilitating the acquisition of over 350 temporary accommodation properties in central London. This investment, made on behalf of Phoenix Group, aims to address housing issues in the borough by offering stability and long-term housing solutions for individuals facing homelessness.
The properties were purchased from A2Dominion, a regulated housing association, and will be refurbished by Westminster City Council to achieve a minimum EPC rating of 'C'. The financing agreement includes a 42-year term with an initial two-year rent-free period, guaranteeing a stable rent level and an option for the council to own the properties after the term.
Gareth Edwards of Macquarie Asset Management commented, “The City of Westminster faces a significant demand on temporary accommodation as it continues to address homelessness in the City. This transaction enables the transfer of a considerable number of properties from a leading social landlord to WCC, who has become the first London local authority to achieve the strongest customer rating of C1 from the social housing regulator.”
Oliver Swallow from Phoenix Group stated, “Tackling systemic social issues like affordable housing is fundamental to our investment philosophy, as not only does it provide robust financial returns for our customers, but it also drives to the heart of our social purpose.”
Westminster City Council's Gerald Almeroth noted, “Like many Councils in London, Westminster is experiencing significant increases in homelessness demand and costs, this acquisition helps to protect much needed quality temporary accommodation supply within the City.”
Since 2015, Macquarie Asset Management has allocated approximately £1.4 billion in debt facilities to local authorities and housing associations across the UK. The investment division boasts around £171 billion in assets under management globally, providing a wide range of financial solutions.
Phoenix Group, one of the UK’s largest retirement businesses, manages £292 billion of assets and offers various pensions and savings products. As a FTSE 100 company committed to sustainable investment, Phoenix Group has set targets to significantly reduce the carbon emissions of its portfolios by 2050.