A new delivery and financing model to support volume delivery of good quality affordable housing through an efficient capital and funding mechanism
An efficient long term funding structure to de-risk development programmes of housing associations or house builders
Addresses challenges faced by housing associations and other developers in terms of valuations, loan covenants and restrictions arising out of their existing funding arrangements
A step change in the ability to unlock significant volumes of institutional investment through a self-sustaining financing structure which achieves true off balance sheet treatment
Genesis Housing Association, M&G Investments and LINQ Partners have joined forces to develop and finance a new model for mixed tenure housing.
LINQ Housing is a new delivery and financing model specifically designed as a means of supporting volume delivery of affordable, shared ownership, market sale and market rented housing through an efficient capital and funding mechanism.
The scheme launched in March 2016 with the purchase of its first long term housing assets from Genesis. The market rent units were drawn initially from two multi tenure schemes in London, 50 flats at Zenith House, Colindale and a further 27 flats in the Mildmay regeneration scheme, Shoreditch. In May 2017 a further 40 flats in the Mildmay scheme were acquired together with 74 flats in Chelmsford. All are new units which will be held by LINQ for market rental on a long term basis.
The new model is expected to be of great interest to the social housing sector because it offers an efficient long term funding structure that can be used to de-risk development programmes of housing associations or house builders.
It also helps to address many of the financial challenges around delivery faced by housing associations and other developers in terms of valuations, loan covenants and restrictions arising out of their existing funding arrangements.
Sponsors & Funders
LINQ Partners, who designed and structured the initiative, is a private investment entity created by specialists in housing finance who are partners and associates of Centrus Advisors LLP. With the closing of the first transaction, LINQ Partners has been established as an independent business which will be run and managed by John Shinton and Mark Gomar.
LINQ Partners is supporting the initiative with equity investment and will drive the next phase of its development seeking to expand the initial base of sponsors to include other housing associations and like-minded equity providers.
Genesis Housing Association is one of the UK's leading housing associations, owning or managing more than 30,000 homes across London and the East of England with a stock portfolio ranging from temporary housing to rented homes, shared ownership homes, homes for outright sale and market rent, and supported housing.
GHA will support the initiative with its own equity investment and further pipeline of new property from its expanding development programme. GHA will also provide a full property management service for LINQ Housing.
M&G Investments is an international active asset manager, investing on behalf of individuals and institutions for over 80 years. At 31 December 2015 the firm managed over £246.1 billion of assets through a wide range of investment strategies across equities, fixed income, real estate and multi asset.
Headquartered in London, M&G employs over 1,900 people worldwide operating from offices across Europe and Asia. M&G is the investment arm of Prudential Plc in the UK and Europe.
M&G provided the long term debt finance for the launch phase of LINQ Housing.
Directors of LINQ Housing
- John Shinton Chairman
- Mark Davie Director
- Elizabeth Froude Director
- Mark Gomar Director
- Ebele Akojie Director
- LINQ Trowers & Hamlins LLP
- M&G Pinsent Mason LLP
- GHA Winckworth Sherwood LLP
LINQ Housing's first homes at Zenith House, Colindale (above) and in the Mildmay regeneration scheme, Shoreditch (left).