A portfolio of 34 properties in East Anglia made up of shared ownership and affordable rental homes, purpose built to help first-time buyers get on the housing ladder, has received a bespoke investment facility to fund further growth.
V&F Homes, a registered provider of social housing, purchased the new-build homes from various developers to help individuals and families, offering affordable homes at less than market rent. The portfolio, which is split into 16 affordable rental homes and 18 shared ownership units, was funded through an investment loan which reached drawdown earlier this quarter.
Spanning seven locations across Norfolk and Suffolk, and ranging between spacious bungalows and houses, the deal was arranged by Matthew-Blaine Young, Head of Origination at Secure Trust Bank (STB) Real Estate Finance.
The loan, which has a term of five years, required specialist knowledge in this area of real estate finance, given the suite of properties is designated as affordable housing and shared ownership properties. Therefore, each property had to meet certain government standards, and bespoke agreements needed to be met between the housing association and the tenant. With previous experience in structuring these tailored loans and flexible lending, STB was able to navigate this specialist area of real estate finance to give V&F Homes a facility that allowed them to purchase and expand the portfolio.
Centrus, a financial services group based in London, acted as advisor to V&F Homes and arranged the financing. Lawrence Gill, Director at Centrus, approached STB due to the bank's knowledge and past dealings in similar transactions.
Lawrence said: "It was a pleasure to work with V&F and STB on this transaction. All parties worked pragmatically towards a solution in a volatile interest rate environment to ensure V&F can continue its growth and provide more high-quality affordable homes in its local area."
Matthew-Blaine Young at STB Real Estate Finance said: "At Secure Trust Bank, our strategic pillars to lending are to grow, sustain and care, and this is certainly why we decided to help fund this deal with V&F Homes.
"Given that many people are looking to get on the property ladder for the first time, along with the housing shortage, being able to fund this deal means we can play our part in supporting first-time buyers and giving people access to affordable housing. We were more than happy to support the purchase of the portfolio."
For more details, visit Secure Trust Bank Real Estate Finance.