London homelessness charity secures £8.8m term loan

More than 10,000 young people will benefit over the building’s 60-year lifespan.

YMCA London City and North said that a £19.4m development project started 14 years ago because the old building was no longer suitable for vulnerable young people.

The charity said that after the new building was completed, transitioning from development funding to a long-term financial product was the final step required to complete the project.

Unity Trust Bank provided the long-term debt solution. This refinanced the development loan from another lender to a long-term financial product that included a remortgage for the new premises. The loan also included additional working capital for further housing programmes.

Chris East, director of community and enterprise at YMCA London City and North, said: “We created new en-suite bedrooms with lounges, kitchens and laundry facilities and it’s now a place where young people can get back their dignity and self-respect and experience being truly independent.

“LandAid House will impact over 10,000 young people over its lifetime, so it was important that we found the right financial partner. The way this deal was structured secures LandAid House and gives us flexibility for the future and that’s a great place for us to be in.”

Gillian Bowen, chief executive of YMCA London City and North, said: “The values of Unity resonate with our cause.

“They have been a consistent, understanding and efficient partner, providing us with a flexible financial product that allows us to stay focused on our objectives to make life better for young people experiencing homelessness.”

Paul Kelly, relationship manager at Unity Trust Bank, said: “The YMCA gives vulnerable and traumatised young people a safe place to live and the chance to rebuild their lives.

“Being a Londoner myself, it was particularly rewarding to partner with an organisation that helps so many young people in the capital.

“Unity’s mission is to do good through finance, and we are proud to work with organisations whose values are aligned with our own.”

YMCA London City and North was introduced to Unity Trust Bank by Thornhill Capital.

Travers Smith acted as YMCA London City and North’s solicitors while DWF conducted the legals for Unity Trust Bank.

YMCA London City and North, which registered with the Regulator of Social Housing in 1996, annually supports more than 600 young people who have experienced homelessness. As a small provider, it does not currently have a regulatory judgement.

The charity has been providing accommodation to young homeless people for almost 120 years. It is an independent charity affiliated with the YMCA movement that was founded in 1844 by Sir George Williams. 

Each person referred to the YMCA is assigned a case worker and life skills coaching along with training and education to help them find employment.