ProFinance buys half of Housing Ladder

Macclesfield-based affordable housing developer Housing Ladder UK has sold a 50% equity stake in the company to ProFinance.

David Sleath, managing director of Housing Ladder, founded in 2009, said: "Our business model has been massively well received and we have some strong opportunities available to us for which we have been seeking to secure the right funding partner.

"I have known Brian Corcoran, one of the owners of ProFinance, for some time and initially met with them to see if they were interested in funding a couple of projects for us. Co-owner, Anthony Young has a proven track record – using private investment – of piecing together innovative financial 'instruments' to facilitate property transactions whilst generating generous shareholder returns.

"ProFinance has fully understood our business model and the ethos of both organisations were a perfect fit with each party bringing complimentary skills."

ProFinance is based in Cheadle Hulme and arranges short-term finance such as bridging loans and capital allowances to property companies.

Current Housing Ladder schemes include 86 apartments in south Yorkshire and a 26-unit development in Macclesfield, which is awaiting a planning decision.

Housing Ladder is also close to signing a deal on a partly completed site in Dublin, which will provide 45 affordable apartments, as well as a site in Leeds, which will provide affordable key worker accommodation for rental on the edge of the city centre close to North Leeds General Hospital.

Anthony Young, director of ProFinance, said: "We very much like the Housing Ladder model focused on the £2.8bn intermediate housing market and by combining the expertise of both management teams we have a number of opportunities that will enable us to generate excellent short, medium and long term returns for our investors."

Housing Ladder targets the band of consumers earning between £13,000 and £30,000 a year without means of raising deposits for a full market value house. The developer aims to work with local authorities who will refer people from their waiting lists who earn too much to qualify for social housing, typically under £13,000 a year.

ProFinance was advised by Gateley, based in Manchester and Housing Ladder was advised by EOS Law, also in Manchester.