Ground-breaking social housing joint venture
L&Q and Trafford Housing Trust
We acted for Trafford Housing Trust (THT) on its ground-breaking £160 million joint venture with London & Quadrant (L&Q) for the development of new charitable/affordable housing and homes for outright sale in Greater Manchester and the surrounding area.
Our innovative structure involved creating a development limited liability partnership (LLP) and a charitable Registered Provider (RP), both of which are jointly and equally funded and operated by THT and L&Q. We drafted and negotiated all the legal documentation to underpin the corporate and funding structures, advised on the complex procurement and contracting arrangements underpinning the joint venture by which THT provides the development services to the LLP and the asset (housing) management services to the RP.
We advised on potential partners in the LLP and membership and governance arrangements for the RP, tax considerations and associated documentation, the drafting of foundation and constitutional documents for the LLP and the RP and intra-group governance arrangements, terms of transfer of property assets to both the LLP and the RP, drafting of development and loan agreements and procurement and State-aid considerations across the entire structure.
The joint venture originally aimed to develop 500 homes per year (rising to 1,000 homes per year within 5 years) for a mixture of outright sale and charitable/affordable housing (the latter being held by the RP) to meet housing need in the North West. We simultaneously advised THT and the LLP on several development joint ventures to sit beneath the LLP.
The immediate benefits of the joint venture have included a development programme under which the LLP is already on site to develop over 700 homes. We subsequently advised THT as it joined with L&Q Group as a subsidiary in October 2019 and we continue to provide legal advice and support on the joint venture and to the Trafford/L&Q Group more widely across their business.On to the next case study