Canada Life Asset Management today announces it has completed a £24 million financing agreement with a registered charity and provider of Specialist Supported Housing to people with housing and care needs.
Canada Life Asset Management has been granted a 250-year long leasehold interest in seven Specialist Supported Housing properties, located in the North of England. The portfolio provides 75 specialised supported housing units that will provide homes and care to those with a housing need.
The leaseback with the Housing Association is for a term of 40-years at an initial rent of £781,220 pa, with annual rental uplifts to CPI +1% (collar of 0% and cap of 5%). Upon expiry of the lease, the long leasehold tenure is determined and the interest in the properties revert back to the Housing Association.
This arrangement has been ‘wrapped’ by a rent insurance policy with a leading European insurer for the 40-year duration of the financing arrangement.
Michael White, Head of UK Property at Canada Life Asset Management said: “We are delighted to be able to contribute to the provision of Specialist Supported Housing. Canada Life Asset Management’s investment in this transaction demonstrates our ability to apply ingenuity to originate sound investments to support our annuity business, whilst also delivering a genuine and positive social impact.”