Legal & General (L&G) is to provide a £40 million (€48.6 million; $66.8 million), 25-year debt facility to Thames Valley Housing Association (TVHA), one of the largest housing associations in London and the South East.
The loan was secured by schemes in Hammersmith and Tooting, which respectively provide worker accommodation for Imperial College National Health Service (NHS) Trust and St George’s Healthcare NHS Trust. It will be used to support TVHA’s development, including the building of 500 new units of affordable housing.
Formed in 1966, TVHA owns, manages or takes care of loans for more than 14,500 homes in London, Berkshire, Surrey, Hampshire, Oxfordshire, Buckinghamshire, Wiltshire and Sussex. These comprise traditional rented housing, shared ownership and worker and student accommodation. In particular, TVHA provides key worker accommodation to eight NHS Trusts, including Imperial College, St George’s and Nuffield Orthopaedic Hospital in Oxford.
L&G, which describes the project as an infrastructure deal, was part of the group of six UK insurers that last autumn pledged to invest £25 billion on UK infrastructure projects over the next five years. This latest deal shows how this total might potentially encompass projects of very different natures, from transport and energy schemes to social and housing programmes.
“An innovative deal, it is believed that this is the first time that institutional finance has been provided to the housing association sector where it has been specifically structured and secured against key worker accommodation,” L&G said in a statement.
The transaction follows L&G’s provision of a £102 million, 15-year debt facility to The Hyde Group last year. The firm says it has invested more than £3.5 billion on infrastructure projects since inception.