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Legal & General eyes more acquisitions from partners after CHP deal
Legal & General (L&G) Affordable Homes is looking to strike more acquisition deals with its management partners after it bought nearly 50 homes from CHP.
Yesterday, the for-profit provider of the global investment firm confirmed that it had acquired 47 shared ownership homes from the Essex-based housing association.
The deal is the first time L&G has acquired homes from one of its 14 housing association management partners. In November 2019, L&G revealed that it had selected 14 partners to manage the homes owned by its for-profit housing provider.
These were chosen on a regional basis and partners had to have the top governance and financial viability ratings from the Regulator of social Housing, with associations including CHP and Stonewater being picked, as well as private firm Pinnacle (see below for full list).
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The deal with 10,000-home landlord CHP will see L&G buy the homes so the association can invest in developing more stock and CHP taking management of the properties.
L&G said that it marks a new model, with the investor not only investing in new stock but also existing stock, with the funds supporting development programmes.
The for-profit provider, which was registered in 2018, said that it is now actively exploring similar deals with its other 14 partners.
L&G now has a secured pipeline of more than 4,500 homes, with around 650 currently in operation.
Carl Hockey, growth and partnerships director at CHP, said: “We’re delighted to have completed the transfer of these properties and to extend our existing partnership with Legal & General Affordable Homes. This agreement will support our commitment to investing to meet the current shortfall in affordable housing across our region.
“Our existing customers living in these properties will continue to benefit from the high level of customer service we provide.”
Update: at 13.05pm 14/01/21
The story was updated to make clear that Pinnacle is not a housing association
L&G’s management partners: full list by region
North West
- Regenda
- Great Places
- Jigsaw
- Karbon Homes
North East
- Great Places
- Karbon
- Pinnacle
- Stonewater
Midlands
- Accord
- Great Places
- Optivo
- Pinnacle
- Stonewater
London
- CHP
- Optivo
- Pinnacle
- Raven
- RHP
South East
- CHP
- Flagship
- Optivo
- Pinnacle
- Raven
- Saxon Weald
- Stonewater
South West
- Accord
- Coastline
- Pinnacle
- Stonewater
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