Residential developer Lifestory has successfully closed two development loans, secured over six development sites in the UK, worth £90 mln (€105 mln). The two facilities were provided by Cheyne Capital and will fund the construction of these sites through to completion.
The funding was arranged by debt and equity advisory firm Moorhall Capital on behalf of Lifestory. The bespoke structuring of both facilities has a revolving element, maximising the efficiency of capital for both borrower and lender.
The facilities cover six development sites (Lichfield, Lymington, West Byfleet, Bath, Cranleigh and Wooburn Green) and represent a total gross development value of over £160 mln (€187 mln) across 315 homes. The properties are focussed on later living and range from 1 to 3-bedroom homes.
Rob Jones, principal at Moorhall Capital, said: 'We are pleased to have advised Lifestory on these important transactions and added a new funding partner to Lifestory’s stable of lenders. Cheyne Capital have worked closely with us to structure two innovative facilities which enable Lifestory to accelerate the delivery of these homes whilst also freeing up further capital for its growing pipeline.'
Lifestory was formed in 2019 through the merger of retirement living housebuilders PegasusLife and Renaissance Retirement with open-market housing specialist Anthology. This created a business with over 2,500 homes across 50 developments around the UK, with a value over £1.5 bn.
David Clark, CFO at Lifestory, said: 'Since the amalgamation of Anthology and PegasusLife in 2019, we reorganised the group to ensure tight control of our operations, taking a regional approach with the support of a strong central team.
'We have also recently appointed a new senior executive team which is well positioned to now take us on a period of growth. With a current lack of suitable housing across the market for all life stages, we’re striving to address this shortage by prioritising the delivery of residential communities across the UK, with a strong focus on later-living homes for those seeking to downsize.'
Richard Howe of Cheyne Capital concluded: 'We are delighted to support Lifestory with investment in these two facilities. Later living is an asset class in which we have strong conviction and we are confident that Lifestory has a market leading team with the complete set of capabilities to deliver this strategy and manage our investment.
'Moreover, Lifestory is directly aligned with our ESG principles and we value the team’s focus on sustainability as well as their dedication to good corporate citizenship. As this asset class continues to evolve, we will be selectively reviewing new opportunities with a view to investing further capital into this sector.'
