Macquarie Asset Management has provided £235m of long-term financing to London’s Westminster City Council to acquire over 350 temporary accommodation properties in the borough of Westminster.

The properties are being bought from not-for-profit A2Dominion, with the aim of helping the council to tackle homelessness and help those waiting for longer-term housing.

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The funding is inflation-linked and carries a term of 42 years, including an initial two-year rent-free period for the council. Under the terms of the deal the council will refurbish the properties to meet a minimum EPC rating – an energy efficiency score – of ‘C’. 

The council will have a guaranteed rent level throughout the funding terms and the option to own the properties at the close of the agreement. The deal has been conducted by Macquarie on behalf of Phoenix Group.

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“We are pleased to support WCC through this financing solution that will secure longer-term tenancies for vulnerable individuals in a cost-effective manner, and at the same time providing Phoenix with a long-term inflation linked stable cashflow,” said Gareth Edwards, senior vice president at Macquarie Asset Management.

Macquarie Asset Management has provided around £1.4bn of debt facilities to local authorities and housing associations in the UK on behalf of institutional clients since 2015.

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