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New organisation teams up with global asset manager to acquire 50 homes from Hyde
A new organisation financed by a global asset management firm has acquired 50 homes from Hyde to let the homes to a London council.
Beehive Affordable Homes has received financing from Macquarie Asset Management’s private credit team to acquire the homes, which are located across the London Borough of Bromley and the surrounding areas.
Bromley Council has agreed to rent the properties from Beehive on a long-term basis with an option to acquire them for £1 at the end of the agreement.
Beehive was set up by Jonathan Bunt, who has held senior finance roles in multiple London councils, and Chris Ashcroft, co-founder of investment management firm Ashmore Group.
Macquarie provided investment for the transaction on behalf of its institutional clients to provide a flexible, long-term financing package.
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Beehive and Macquarie said they intend to replicate the model across the country, working with local authorities.
Mr Bunt said: “We are really happy to use our expertise in housing and finance to ensure that these homes stay in the wider affordable housing sector. We have been able to deliver this portfolio of homes at genuinely affordable rates for Bromley residents whilst also paying Hyde a fair price for their homes.
“This win-win outcome means Hyde can reinvest into new affordable schemes which are so desperately needed. Our ambition is to help to enable an overall net increase in affordable homes.”
Guy Slocombe, chief investment officer at Hyde, said: “We had identified these homes as suitable for sale some time ago and had recently completed works to all of them to bring them up to a higher standard.
“The main thing for us is that these homes are earmarked for people who were, until recently, in temporary accommodation. They now have a genuinely affordable, long-term home, and the fact that they can move in during the global pandemic makes it that much more special.
“We select homes for sale based on a number of different factors and reinvest the proceeds into building more affordable homes that the South East desperately needs.”
Gareth Edwards, senior vice-president at Macquarie, said: “We are delighted to have played a key role in this important transaction, demonstrating the alternative funding models available to local authorities to help finance their social infrastructure investment needs.
“This commitment underlines our desire to finance the UK affordable housing sector and local authorities, with approximately £700m invested in these sectors on behalf of our clients over the past five years.”
Hyde was advised by Trowers & Hamlins, Macquarie by Addleshaw Goddard, and Beehive by K&L Gates.
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