Phoenix Group, the UK’s largest long-term savings and retirement business, has provided a £58 million long term financing package, arranged by Macquarie Asset Management, to support a joint venture between Bromley Council and Pinnacle for the planned acquisition of more than 200 affordable homes.

The financing features a 55-year inflation linked loan and will enable London’s largest borough to increase the availability of affordable housing within its community. The properties have been earmarked to house those currently homeless or in temporary accommodation providing a longer duration of tenure.  

Oliver Swallow, Investment Manager, Phoenix Group, said: “The housing crisis continues to be one of the most prevalent challenges that we face across the UK and we are pleased that our investment to support the London Borough of Bromley will help those who are at risk of less secure or unaffordable housing. Phoenix is committed to help support the levelling up across the whole of the UK, by continuing to invest in quality homes.”

Gareth Edwards, Senior Vice President, Macquarie Asset Management added: “The current demand for housing across the capital has placed tremendous pressure on local communities and councils. The numbers of those facing homelessness or housed in temporary accommodation have prompted local authorities to look at ways to increase housing supply, with councils seeking alternative solutions to finance their housing needs. With more than £1 billion invested in this sector to date, this latest agreement demonstrates our ongoing commitment to helping local authorities address the housing shortfall impacting the most vulnerable members of our society.”

Councillor Yvonne Bear, Executive Councillor for Renewal, Recreation and Housing, Bromley Council said: “We are increasing local affordable housing supply, including by building houses as part of our Bromley Homes for Bromley People initiative and by working with partners on acquisitions. We are pleased the financial arrangement from Phoenix Group and Macquarie Asset Management for this joint venture with Pinnacle has been agreed, which delivers more affordable homes for families and also reduces the need for temporary accommodation and high costs associated with this.”