Client story

JLL acts as lead advisor on sale of UK’s largest residential shared ownership portfolio

Loan Advisory and Affordable Housing teams led the substantial transaction

Time

2021 (May)

Value

£365m

Size

Portfolio of c.3,000 shared ownership properties

Location

UK

"Since their appointment, the JLL team have demonstrated an unrivalled combination of skills, exceptional dedication and they have delivered an outstanding result. We are delighted that we choose JLL and very much look forward to working with them again in the near future.”

Client testimonial, Leading UK pension service provider for government pension schemes
Challenge:

A local authority pension fund required an experienced lead advisor to facilitate a corporate sale of a UK-wide residential shared ownership portfolio. Initially, JLL was appointed to undertake a sub-portfolio review, however, subsequent to this, the client decided to progress a full portfolio sale and so invited a number of parties to pitch including firms drawn from accounting, investment banking and real estate disciplines. After an extensive process, JLL was exclusively appointed in September 2020.

Solution:

In September 2020, we were formally appointed to lead the corporate sales process on behalf of the client. As the exclusive lead financial and real estate advisor, we both led and project managed all aspects of the transaction including modelling, structuring, due diligence, data room oversight, pricing, deal negotiation as well as engaging with other advisors. Our Loan Advisory and Affordable Housing teams worked, in total, over 12 months to deliver the transaction – a sale to a national for-profit registered provider funded by major institutional investors.

Result:

With the sale of over 3,300 homes, the transaction represents the largest ever sale of a UK residential shared ownership portfolio, both in terms of the number of homes sold and total deal value. “Our role as Lead Advisor on this ground-breaking transaction enabled us to draw upon an unrivalled combination of loan advisory, corporate finance and residential expertise,” said Ian Guthrie, JLL’s Senior Managing Director, Loan Advisory. “The outcome, for our client, is the result of over 12 months hard work and represents a fantastic achievement delivered through first-class teamwork, despite the backdrop of a challenging economic environment.”

Charles Cleal Director, Affordable Housing, JLL, added “This is by far the largest shared ownership transaction to date. With a large amount of interest from private capital we expect investment in this asset class to continue to grow. This positive outcome for our client is testament to the experience and expertise of our affordable housing, corporate finance and loan advisory teams.”

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