Aviva Investors’ REaLM Social Housing fund has provided a £44.3m, 40-year loan for Genesis Housing Association, secured by a portfolio of 307 homes.
The facility has an all-in cost of 2.05% and the new funds will be spent to build more homes. The loan is backed by the portfolio’s shared ownership units. The properties, all residential, are located in London and the Home Counties.
“As a comprehensive funder with a long history of supporting affordable housing and registered providers, we offer the full array of financing alternatives, including tailor-made propositions such as this one,” said Martin Zdravkov, Aviva’s fund manager for REaLM Social Housing.
The Returns Enhancing and Liability Matching (REaLM) Social Housing fund targets UK residential properties owned and managed by registered providers such as housing associations or local authorities.
The latest transaction is REaLM’s ninth since launching in 2011, bringing the total invested to just under £190m. It is about two-thirds invested.
Elizabeth Frounde, executive director at Genesis Housing, said: “From doing a little bit of extra work, we have now developed a framework which matches cost to income stream, a very competitive cost of funds and a relationship with Aviva Investors REaLM Social Housing which can easily be replicated in the future.”
Aviva’s REaLM range also includes ground rents, infrastructure, and multi-sector funds. The funds invest in assets that provide secure, long-term, inflation linked cashflows.