LIVERPOOL-BASED property finance firm GB Finance is forming a £43m joint venture with Cosmopolitan Housing Association to provide specialist accommodation for the NHS and local authorities.
The deal signals a new strategy for GB, which has traditionally sourced debt funding on behalf of property investors, and is now looking to make direct investments itself.
Cosmopolitan, which is also based in the city, wants to expand its privately funded supported housing service over the next two years.
It will assist local authorities and NHS Trusts in plugging the gaps in their publicly funded development programmes.
The investment is expected to lead to the creation of 100 additional units of accommodation for people with supported housing needs that would otherwise stay on a local authority waiting list.
A team from GB Finance, which is based at The Plaza, in Old Hall Street, has worked closely over the past few months with Cosmopolitan to structure the deal.
GB has provided the joint venture with an initial £9.3m from its own resources with the rest of the £43m being secured from lenders.
Director Gary Gardner told LDP Business last night: “We have worked with Cosmopolitan for some time and have been very impressed with the management team.
“They are a very talented group of people who are totally dedicated to providing high- quality accommodation for their clients.
“Initially, we had to take time to understand their sector and the challenges that the team faced in delivering their projects.
“Our business model has adapted over this past year to enable us to not only provide the funding for property based projects but now to inject capital via joint ventures.”
GB’s Liverpool team includes specialists in the banking, investment, construction and accountancy sectors.
They are now keen to apply their experience to other investment projects including pub chains, shopping centres and residential portfolios.
Despite the credit crunch, the company’s long-standing and close relationship with lenders enables the firm to secure debt funding.
Last year, GB was in talks to buy troubled Merseyside estate agency chain, Venmore, but failed to reach an agreement.
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