A local authority pension fund that was an early financial backer to a major for-profit registered provider (RP) has exited its investments, Social Housing understands
Lancashire County Pension Fund (LCPF) had previously invested both debt and equity into companies behind Heylo Housing’s RP, a for-profit RP which specialises in shared ownership and today owns more than 5,600 homes.
These investments included forming a joint venture with Heylo’s principal shareholder, property investor Giles Mackay, at the launch of the company in 2014.
The for-profit RP, now known as Heylo RP, was acquired externally and brought into the group in 2017.
A corporate restructuring process, which began in December 2017, meant that the pension fund’s interest in the group, held by Lancashire County Council as administering agent, became contained within a subsidiary property company called HH No.1 Ltd.
As the fund’s 2019/20 statement of accounts records, LCPF’s “previously held equity and debt investments were realised and converted at nil gain or loss to an equity holding in HH No.1 Ltd, a real estate investment trust”. This document values the holding at £330.5m as at 31 March 2020.