Housing Associations in the UK are combining Private Sector Finance with Housing Grants to meet their long term strategies for the provision of new developments.
Whilst there has been considerable activity using this mechanism on mainland UK and NI, there is an ideal opportunity awaiting for more Northern Ireland Housing Associations with an ambitious long term strategy to take up this concept.
Housing Associations who have successfully raised funding using this mechanism
Mosscare St Vincent's raises £140M
The housing association, which operates 8,500 homes around Greater Manchester, Lancashire and West Yorkshire, has secured funding from one North American and two UK-based institutional investors. St Vincents's has secured 140m in its first ever private placement
Helen Rourke, executive director of finance at MSV, said: “The need for good-quality affordable homes and the services and support we provide to our customers has never been greater.
“The new funding will enable us to grow and deliver against our ambitious development plans, as well as invest in our existing homes and services.”
Clanmill Housing Association (NI) : new £100m investment
Clanmil Housing announced a new £100m investment from three UK and North American investors.
This is the first private placement deal for Clanmil, a housing association providing more than 5,600 high-quality social and affordable homes throughout Northern Ireland for families and older people.
The investment, by Aviva Investors, iA Financial Group and Pension Insurance Corporation Plc, will support the delivery of Clanmil’s five-year strategy. By 2026, Clanmil plans to have provided a further 1,400 much needed high-quality homes, as well as investing in maintaining and upgrading existing homes to ensure they are energy efficient and remain good places to live.
The package will enable Clanmil to access housing development grants from the Department for Communities, combining public and private funding to create a total investment in new homes of some £200m.
Cross Keys Homes (CKH): £100m private placement
A Peterborough-based housing association is set to build up to 2,500 new homes across the East of England, with the support of a £100m private placement arranged by Lloyds Bank.
The private placement funding for the development is being provided by Aviva Investors and Sun Life Capital Management.
CKH chief executive, Claire Higgins said: "We are delighted to have secured this first private placement with our new funding partners Aviva Investors and Sun Life Capital Management. The funds will help us to deliver our commitment to build much needed good quality affordable homes that people want to live in."
Rory Brown, director of corporate financing and risk management at Lloyds Bank, added: "There is a pressing need to develop the supply, quality, and sustainability of social housing not just in the East of England but across the UK. Housing Associations are playing a crucial role in providing more opportunities for more people to live in more affordable, warmer, better homes."
Curo Housing Association: £100m private placement
Bristol and Bath-based housing association, Curo has secured a new £100m fully deferred private placement from Scottish Widows. The facility will be drawn in two tranches; £40m in 2024 and £60m in 2025, in line with the development of Curo’s affordable homes programme.
The Housing Association aims to work with residents and partners to face external challenges and to deliver their purpose of “Homes for Good”.
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