M&G Real Estate is providing £19m for the development of 189 homes in Wales for development company Porthcwlis.
Porthcwlis is owned by Welsh housing association RCT Homes. The homes will be delivered in Cardiff and Brynawelon, Cwmbach.
M&G has acquired a 200-year long leasehold interest in the land and is providing the finance to RCT Homes for the development.
RCT Homes has initiated a 37-year lease with annual reviews linked to inflation and will be responsible for all outgoings, maintenance and repairs during the term.
On expiry of the 37-year lease, RCT Homes will have an option to take ownership of the properties, adding to their social and affordable housing stock.
Shailendra Shah, director, investment, M&G Real Estate said: “We have created a replicable template that makes new social housing schemes viable. We hope it will appeal to other housing associations and local authorities with development ambitions, to assist in the creation of new housing stock.”
Bellerephon is managing the development. DTZ advised M&G Real Estate.
