International law firm, Trowers & Hamlins has advised Westminster City Council on the acquisition of a portfolio of 368 homes for temporary accommodation with a loan from Phoenix Life Limited.
The Council acquired the A2Dominon portfolio through a unique funding structure which used a Credit Tenant Lease, a method of funding that enables the Council to pay for the 368 properties over a term of 42 years and a guarantee from the Council in favour of Phoenix Life. The funding provided includes an additional sum to help the Council achieve an EPC C rating on the properties by 2030.
Trowers advised on the financing arrangements with Phoenix Life and the acquisition of the A2Dominon property portfolio, including the purchase agreement, due diligence and the Credit Tenant Lease.
Imogen Fisher, Banking and Finance Partner, said:
"It was brilliant to support Westminster City Council on this transaction. This acquisition utilised an innovative finance structure and has ensured that the Council can continue to use the 368 properties for temporary accommodation.
Utilising this form of private sector finance allows the Council to fund sub-market housing at competitive rates, helping them move towards their longer term aims of acquiring more directly owned temporary accommodation and reducing its reliance on nightly booked accommodation. Working with the amazing team at Westminster City Council and great colleagues we were able to deliver the advice needed for this project."
Multiple Trowers teams worked cohesively on this project, including Banking and Finance, Real Estate and Governance, with key team members including Scott Dorling, Hannah Jackson, Andy Barnard, Emma Carr, Rob Wooliams, Daniya Ahmed, Lydia Jones and Annabel Gooden.
Gerald Almeroth, Executive Director of Finance and Resources at Westminster City Council added:
“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.
This innovative financing structure through Phoenix Life will help the Council secure and improve these housing assets for the long-term benefit of our residents. The Council’s internal housing, finance and legal teams worked brilliantly in partnership with Trowers to get this deal over the line.”
