Legal and General

Legal & General enters £100m partnership with Bromford

Legal & General has provided £100m in deferred long-term financing to affordable homes provider Bromford Housing Group.

The funding will be drawn in 12 months’ time and will support the Bromford’s strategic development goal to deliver 12,000 new affordable homes by 2028.

Bromford recently announced the delivery of over 1,000 new homes in the year ended 31st March 2020.

It has re-opened its development sites following the easing of lockdown measures.

The investment has been made by LGIM Real Assets on behalf of its clients, including Legal & General Retirement Institutional, which first invested in Bromford in 2012.

NatWest Markets acted as sole agent in Bromford’s private placement issuance, with Newbridge providing treasury advice. 

Legal advice was given by Trowers & Hamlins and Addleshaw Goddard.

Steve Bolton, head of private corporate debt in Europe at L&G, said: “[We are] uniquely placed to invest annuity money into the UK economy, supporting its long-term pension commitments and creating real assets which provide new jobs, housing, productivity and wage growth. 

“Our investment in Bromford matches our extended liabilities and delivers both real economic growth and social value for the UK.

“There is an urgent need to provide stable homes for millions of households on waiting lists, and partnerships like this will help deliver on that need.”

Imran Mubeen, head of treasury at Bromford, commented: “We have taken a proactive approach right across the business to managing the challenges and opportunities arising from Covid-19. 

“We have now resumed development and look forward to delivering more homes and services at a time our communities and families rely upon us more than ever. 

“It is important that we work with funders and investors who understand our long-term strategic plan, and we are delighted to extend our partnership with LGIM who continue to support our journey and appreciate the way we work.”

George Flynn, vice president at NatWest Markets, said: “We are delighted to once again partner with Bromford on this successful £100m long-dated, delay-draw transaction. 

“…We were able to structure a flexible and competitively-priced transaction to support Bromford’s long-term strategic plan and growth agenda in order to deliver much needed affordable housing.”

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