24 MARCH 2014

(London): Aviva Investors today announces the funding of 217 residential properties in South Yorkshire for Alliance Housing Limited (a newly founded subsidiary of South Yorkshire Housing Associaton) and 178 residential properties in Oxfordshire for GreenSquare Community Homes Limited (a subsidiary of GreenSquare Group Limited).

The transactions by the Aviva Investors REaLM Social Housing Fund, part of the Aviva Investors Returns Enhancing and Liability Matching (REaLM) fund range, represents the fund’s first deal with Alliance Homes and third with GreenSquare. Approved by the Homes and Communities Agency, they bring the total investment to date to over £130 million. 

The Aviva Investors REaLM Social Housing Fund invests in high quality UK residential property that is let on long-term leases to registered providers and local authorities, providing a strong match for investors’ income requirements. REaLM is a real estate based, fully amortising financing solution with low initial yield and no refinancing risk.Developed with a housing association, for housing associations, it builds on Aviva Investors strong understanding of real estate to deliver asset management focused funding. 

The REaLM fund range was launched in July 2011 to invest in specialist real estate and infrastructure-related assets that provide secure, long-term, inflation linked income streams. It aims to help institutional investors, particularly UK pension funds, address the challenges they face in matching liabilities and capturing income in a low-yield environment. The assets held are fully amortising, and leases are structured to avoid the uncertain property reversion which is usual for assets held in traditional property funds.

South Yorkshire Housing Association Limited (and its subsidiaries) manage over 5,800 properties in South Yorkshire. Alliance Housing Association, a wholly owned subsidiary of South Yorkshire Housing Association, was set up for the purpose of facilitating the transaction with Aviva Investors REaLM Social Housing.

GreenSquare Group owns and manages 11,600 properties in Wiltshire, Oxfordshire and Gloucestershire, and is the parent company of GreenSquare Community Housing. GreenSquare was advised on the transaction’s structure by Savills.

Nigel Rule, fund manager for the Aviva Investors REaLM Social Housing fund commented: 

“These new transactions provide cost effective and sustainable long term financing for affordable housing and we are very pleased to be working with Alliance Homes for the first time and GreenSquare for the third.

“We continue to see significant interest from UK pension funds in high quality specialist real estate assets, at a time when local authorities and other registered providers are looking for new sources of funding and when the UK government is encouraging the private sector to play a greater role in affordable housing development. As a result, we have significant equity commitments available and are very happy to discuss similar opportunities with other registered providers and local authorities.”

Rob Young, Director of Finance, South Yorkshire Housing Association commented:

“Alliance Housing is delighted to complete this transaction with Aviva Investors It brings a valuable new source of funding and funding partner to our business.”

Tim Jackson, Executive Director (Finance), GreenSquare Group commented:

“We believe that a balanced funding strategy is the key to effective treasury management and that an element of index linked finance will have an increasing role to play within this. We will continue to explore other opportunities with Aviva Investors to fund more new homes developed or acquired by GreenSquare in the future.”

Aviva Investors REaLM Social Housing fund was advised by Chaco Limited and Trowers and Hamlins LLP.

 

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For more information contact:

Steve Ainger

Media Relations

+44 (0)20 7809 8618

 

Grant Bather

Media Relations

+44 (0)20 7809 6252

 

Important Information

The information and opinions contained in this document are for use by the financial press and media only, and do not purport to be full or complete. No reliance may be placed for any purpose on the information or opinions contained in this document nor should they be seen as advice.The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested.

This information is not for general distribution in, from or into the United Kingdom because the funds are unregulated collective investment scheme whose promotion is restricted by sections 238 and 240 of the Financial Services and Markets Act 2000. When distributed in, from or into the United Kingdom, this information is only intended for persons having professional experience of investing in unregulated schemes, high net worth companies, partnerships, associations or trusts and personnel of any of the foregoing having professional experience of investing in unregulated schemes (each within the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001), persons outside the European Economic Area receiving it electronically, persons outside the United Kingdom receiving it non-electronically and any other persons to whom it may be communicated lawfully. No other person should act or rely on it. Other persons distributing this information in, from or into the United Kingdom must satisfy themselves that it is lawful to do so.

Notes to Editors

The Aviva Investors REaLM 

The "REaLM" word is a trademark of Aviva Investors Global Services Limited.

The Aviva Investors REaLM Social Housing Fund is a Jersey regulated property unit trust.  Units in the unit trust are being offered to professional clients and qualified/ institutional investors by invitation only in accordance with restrictions imposed by the Jersey Financial Services Commission.

Aviva Investors

Aviva Investors is the global asset management business of Aviva plc. The business delivers investment management solutions, services and client-driven performance to clients worldwide. Aviva Investors operates in 15 countries in Asia Pacific, Europe, North America and the United Kingdom with assets under management of £246 billion at 30 September 2013.

Aviva plc

  • Aviva provides 34 million customers with insurance, savings and investment products.
  • We are the UK’s largest insurer and one of Europe’s leading providers of life and general insurance.
  • We combine strong life insurance, general insurance and asset management businesses under one powerful brand.
  • We are committed to serving our customers well in order to build a stronger, sustainable business, which makes a positive contribution to society, and for which our people are proud to work.
  • Alliance Housing

South Yorkshire Housing Association Limited (and its subsidiaries) manage over 5,800 properties in South Yorkshire. Alliance Housing Association, a wholly owned subsidiary of South Yorkshire Housing Association, was set up for the purpose of facilitating the transaction with Aviva Investors REaLM Social Housing.

GreenSquare Group

GreenSquare is a major provider of housing, regeneration, care and support and commercial services across Wiltshire, Oxfordshire and Gloucestershire.  The Group's core business is building, managing and maintaining homes as well as supporting strong and stable communities. As well as managing and improving its current 11,000 homes, it is providing a range of new ones. These include homes for social and affordable rent, as well as homes for market rent and sale through its commercial subsidiary Oakus Estates and Haboakus, a joint venture with Kevin McCloud’s company Hab.

 

Aviva Investors Global Services Limited

No. 1 Poultry, London EC2R 8EJ 

Phone +44 (0)20 7809 6000 

Fax +44 (0)20 7489 7940

Web www.avivainvestors.com

Email info@avivainvestors.com

 

Aviva Investors Global Services Limited, registered in England No. 1151805.  Registered Office: No. 1 Poultry, London EC2R 8EJ.  Authorised and regulated in the UK by the Financial Services Authority and a member of the Investment Management Association. 

Contact us at Aviva Investors Global Services Limited, No. 1 Poultry, London EC2R 8EJ. 14/0172/300614