Macquarie Group's (ASX:MQG) asset management arm lent 235 million pounds sterling to Westminster City Council to fund the purchase of more than 350 temporary accommodation properties within the borough of Westminster from A2Dominion, according to a Wednesday statement.

On behalf of British retirement business Phoenix Group, Macquarie Asset Management agreed to the 42-year, inflation-linked financing, which includes a two-year rent-free initial period.

Westminster City Council will refurbish the properties to achieve a minimum Energy Performance Certificate rating of "C," per the statement. It has the option to own the properties at the end of the agreement, the statement added.