Uk developer Pocket Living has secured a 拢24.5m (鈧�28.7m) loan from Future Growth Capital (FGC), an independent private markets solutions business formed by Phoenix Group and Schroders.
The two-year loan facility will be used to repay existing senior development finance, as well as to facilitate Pocket Living鈥檚 sale and rental business plan for an affordable housing development in Harrow, North London.
The scheme, completed in January this year, comprises a mixture of affordable units for sale and for rent. In total, the project contains 149 one-bedroom 鈥榩ocket鈥� properties, 109 of which will be offered at discounted prices.
Kristina Foster, head of real estate debt, Future Growth Capital said: 鈥淲e are pleased to be supporting Pocket Living in the delivery of affordable, high-quality housing. In doing so we can contribute to alleviating the UK鈥檚 acute housing crisis, particularly for first-time buyers in London.
鈥淭his deal underscores Future Growth Capital鈥檚 commitment to affordable housing as both a social imperative and critical pillar of sustainable urban development, aligned with Phoenix Group鈥檚 commitment to the sector.
鈥淭he asset quality and location at Sheepcote Road in Harrow make the transaction an attractive risk-adjusted return proposition for UK pension savers, who benefit from the income generation of the transaction, alongside contributing to the provision of affordable housing.鈥�
Chris Middleton, chief financial officer, Pocket Living said: 鈥淭his new funding with Future Growth Capital introduces important new flexibilities that allow us to continue to help unlock the potential of this fantastic affordable housing scheme to meet London鈥檚 needs.
鈥淭he redevelopment of Sheepcote Road demonstrates how an underutilised site can be successfully transformed into intermediate housing for sale and rent and targeted at those city-makers who are at serious risk of being priced-out of the capital. We look forward to working with Future Growth Capital, using their specialist knowledge and building a strong relationship with the team.鈥�
FGC鈥檚 real estate debt investment strategy directly originates loans between 拢10m and 拢30m across all real estate sectors in the UK.
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