Registered Provider, Cromwood Housing Group, has announced the signing of a new £19.39m loan with Rothschild & Co as part of a Greater London Authority (GLA) led scheme aimed at eradicating rough sleeping, as well providing housing for domestic abuse victims.
The new debt facility, along with a £18.1m grant from the GLA, will allow Cromwood to proceed with the acquisition of 160 new properties. Of these, 140 will provide long term, move-on, housing for those sleeping rough in London, while the remaining 20 will be designed to house individuals fleeing from domestic violence.
Cromwood has partnered with two charities – Thames Reach, which works with people affected by rough sleeping to deliver this project, and Solace, which supports survivors of abuse, violence and exploitation. Both charities will identify suitable clients and provide a range of support to help them settle into their new homes.
This transaction follows 135 properties acquired in 2021 to tackle rough sleeping with support from GLA grant and a c.£20m loan from BAE Systems Pension Fund.
The new facility, which was arranged and structured by Centrus, has a fixed rate 19-year term in line with the GLA nominations agreement and is secured against the cashflow from the acquired properties.
“This investment will enable us to provide much-needed specialist housing across London and extend our work in this area. It’s a real achievement to partner with a company of Rothschild & Co’s size and reputation to invest in social housing. It follows on from our success with BAE Systems last year and demonstrates the key role smaller registered providers can play in attracting new investors into this market to accelerate the supply of accommodation for rough sleepers and those fleeing domestic violence and abuse.”Moses Hirschler, Chief Executive – Cromwood
“We are delighted to have worked with the Cromwood team again, and Rothschild & Co, to put in place this loan facility, in addition to the £20m we arranged from BAE Systems Pension Fund last year. This additional funding will have a direct and positive impact on the lives of those concerned and embodies our ethos of finance with purpose.”Phil Jenkins, Managing Director – Centrus