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Centrus Advises Places for People in Largest Direct Institutional Investment in Affordable Housing Sector

Places for People Homes (PfP) has recently completed a new 50 year lease transaction with Legal & General Investment Management (LGIM) which raises a total consideration of £252m secured on approximately 4000 units. This represents an investment of approximately £63,000 per unit.

The proceeds will be used by PfP to accelerate the development of some 7000 new housing units over the next few years and thus makes a significant contribution towards the government’s aims to increased institutional investment in the sector and to stimulate the building of more homes for rent. The transaction is the largest single direct investment to date made by an institutional investor into the affordable housing sector.

Centrus acted as financial advisor to PfP and worked closely with the PfP team to implement the transaction. This involved careful evaluation of the structure and financing terms. In addition Centrus ensured that PfP obtained value for money through a competitive process. Finally Centrus worked closely with both principals and their respective legal teams to ensure the transaction progressed to completion and that PfP’s corporate objectives were delivered.

Coming on the back of recent transactions for other Registered Providers such as Genesis and Thames Valley Housing Associations, this transaction underlines the growing reputation of Centrus in supporting its clients in the delivery of innovative financing structures in the institutional market.