Pension Insurance Corporation publishes in a press release: “Pension Insurance Corporation plc (“PIC”), a specialist insurer of defined benefit pension funds, has completed a unique investment with the London Borough of Bromley (“LBB”), to help alleviate local emergency homelessness. The £67 million deal will be used to purchase up to 300 affordable properties outright. This will significantly reduce the Council’s current cost of emergency nightly accommodation, for example by eliminating reliance on hotel rooms, for families in need of temporary accommodation across the Borough.
This innovative funding concept is a key part of LBB’s Housing and Homelessness strategy. The properties will be managed by specialist housing group, Orchard and Shipman.
Key points of the transaction:
- £67 million long-dated funding maturing in 2071
- The inflation-linked funds are secured on the housing assets
Councillor Peter Morgan, Bromley’s Executive Councillor for Renewal, Recreation and Housing, said: “We are delighted to have completed this deal, which will allow us to help families in genuine need whilst better managing Bromley’s budget. I’d like to thank the team at PIC for their flexible and innovative approach to structuring this deal, which is positive news as we seek to proactively tackle the blight of temporary homelessness which can be so distressing for those families affected.”
Max Cawthorn, Investment Strategy Manager at PIC, said: “We are proud to have worked with the London Borough of Bromley on this innovative funding deal. As a long-term investor, PIC has a track record of working with borrowers to structure bespoke deals that meet their needs, match secure cashflows with the pensions we will be paying decades into the future, and benefit society. This investment ticks all those boxes and we are really pleased to be able to help alleviate homelessness in one of the largest boroughs in London.””
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