Westminster City Council Agrees £235m deal to buy 350 Homes
Westminster Council has finalised an agreement with A2Dominion to address homelessness and provide greater certainty for those awaiting longer-term housing solutions.
Macquarie Asset Management is supplying funding for the initiative on behalf of Phoenix Group, one of the UK’s largest long-term savings and retirement organisations.
The inflation-linked funding spans 42 years and includes a two-year rent-free period for Westminster Council.
The Council will Refurbish the Properties to Achieve a Minimum Energy Performance Certificate Rating of C
The council will also benefit from guaranteed rent levels throughout the funding term, with an option to acquire ownership of the properties at the end of the agreement.
Gerald Almeroth, Executive Director of Finance Resources at Westminster Council, stated, “Like many London councils, Westminster is facing significant increases in homelessness demand and associated costs.
“This acquisition ensures the protection of much-needed quality temporary accommodation within the city. This innovative financing structure secures and improves housing assets for the long-term benefit of our residents.”
Gareth Edwards, Senior Vice-President at Macquarie, highlighted, “This transaction transfers a substantial number of properties from a leading social landlord to Westminster Council, which has become the first London local authority to achieve the highest customer rating of C1 from the social housing regulator.”
Since 2015, Macquarie has provided approximately £1.4 billion in debt facilities to UK local authorities and housing associations on behalf of institutional clients
In July 2023, Phoenix Group worked with Macquarie to deliver a £58 million long-term financing package that enabled Bromley Council to acquire over 200 affordable homes.
Oliver Swallow, Senior Investment Manager at Phoenix Group, commented, “Addressing systemic issues like affordable housing is central to our investment philosophy. It not only delivers robust financial returns for our customers but also aligns with our social purpose.
This long-term public-private initiative will bring stability to Westminster residents facing unaffordable, unsuitable, or unsafe housing conditions, while expanding our affordable housing portfolio to £1.5 billion.”
Towards the end of last year, Westminster Council also launched a new partnership with 11 registered housing providers across the borough to improve housing services through collaborative efforts.
