Jigsaw Homes Group has completed the first stage in an ambitious £715m treasury restructuring to allow us to maximise our financial capacity and build more homes. Working closely with our partners Savills Financial Consultants and Trowers & Hamlins, we were able to create a new Group treasury vehicle.
This involved the five housing associations within the group entering into new loan agreements with six existing lenders, and £25m in additional funds from Nationwide in a £715m overall package.
The new structure, will support not only the delivery of Jigsaw’s corporate plan in delivering 2,100 homes in the three years to March 2021, but will provide the additional capacity and ability to deliver an additional 800 units per annum thereafter.
Paul Chisnell, Executive Director Finance at Jigsaw, said: “This is the result of nearly two years of work and is an important step towards realising the full potential of the formation of the Jigsaw Group. It provides the Group with additional financial resilience and capacity to deliver more homes. Our lenders across the Group have been supportive throughout the course of this project; because of this we were able to complete it during these unprecedented circumstances we were presented with, at the tail end of the process.”
Savills Financial Consultants worked with Jigsaw over 18 months to advise on the new structure and conducted detailed liaison with the six lenders involved in the process.
Sean Escott, Director at Savills Financial Consultants, said: “This is an important first step in the longer-term Jigsaw plan to maximise its financial capacity to deliver its corporate aims. The creation of a new group treasury vehicle with streamlined loan covenants harnesses the strength of individual members of the Jigsaw Group. It gives Jigsaw additional headroom and positions it to access further funds when needed.”
The Trowers & Hamlins Banking team advised on all aspects of the financing work and its Real Estate Finance Security Team advised on all related property security aspects of the deal, carrying out due diligence on over 34,000 properties.
Melanie Comer, a Partner at Trowers & Hamlins and who led the property security team on the transaction, said: “We would like to congratulate all parties involved for closing this transaction – particularly under the difficult circumstances presented by COVID-19. It has been rewarding working with Jigsaw on the refinancing of their treasury portfolio as it will contribute towards them being able to meet the ever-increasing demand for affordable homes in both the North West and the Midlands.”