21st September 2020
Secure Trust Bank Real Estate Finance has completed a trio of deals with Funding Affordable Homes (FAH), totalling £16.5m
The multi-million-pound loan will fund three new housing developments which will deliver 214 homes for affordable and social housing.
Two of the developments are on the Isle of Wight.
Green Meadows at Freshwater is an extra care housing scheme of 75 one- and two-bedroom apartments for rent and shared ownership.
The other, Ryde Village (pictured top), also comprises 75 one- and two-bedroom extra care apartments, plus 27 two-bed bungalows for older and vulnerable residents.
The final project is located in Rochdale, the development of 37 one-bedroom extra care apartments for vulnerable adults at Ladybarn, Milnrow.
FAH has agreed 20-year management leases on all schemes, with Southern Housing Group for the Isle of Wight developments, and Partners Foundation Limited for the Rochdale project.
Once complete, the developments will be retained by FAH as part of its investment portfolio.
FAH was advised by Edmond de Rothschild REIM, with debt advisory services provided by BBS Capital.
Matthew-Blaine Young, London-based relationship director at Secure Trust Bank Real Estate Finance, said: “Affordable and social housing is a sector in which we are seeing increased activity as a result of the current high demand for homes.
“Secure Trust Bank provided three separate development-to-investment facilities, over five years, to FAH,” he stated, explaining it will get developments “off the drawing board and retain them for income generation and capital appreciation.”
James Whidborne, head of residential fund management UK at Edmond de Rothschild Real Estate Investment Management, added: “This is another milestone for FAH and more evidence of the increasing appetite from the banking and investor universe for affordable housing as an asset class.”
Published in Development Finance Today