Return to search

M&G backs Staffordshire social housing

M&G Investments has provided a £22m, 35-year facility to Staffordshire Housing Association. The loan will be used to refinance the housing association’s existing debt as well as develop 200 new social housing homes in the Staffordshire region of the West Midlands.

M&G Investments has provided a £22m, 35-year facility to Staffordshire Housing Association.

The loan will be used to refinance the housing association’s existing debt as well as develop 200 new social housing homes in the Staffordshire region of the West Midlands.

M&G“Financing of this type for housing associations enables them to contribute towards meeting the growing demand for affordable housing in their local communities,” said Mark Davie, head of social housing at M&G.

“Our pension fund clients continue to seek cash flows over the long-term which are secured against residential property. M&G has now invested over £6bn in UK social housing through property transactions, public bonds and private placements and we’re keen to do more.”

M&G provided around £400m of loans to housing associations during 2014. Last November, it supplied Christian Action Housing Association with a £50m, 30-year loan to help develop additional homes in the north-east of London. It provided £40m of long-term finance to Merseyside housing association One Vision Housing last August.

Staffordshire Housing has around 3,000 homes under management.

“Refinancing has increased the long term certainty of financing cost in our business plan,” said Rob Morton, commercial finance director at Staffordshire Housing.

“This stability gives Staffordshire Housing a solid foundation for making new development decisions in the future.”

Until recently, housing associations have generally relied on banks and The Housing Finance Corporation for funding. However, with banks withdrawing from the market since the credit crunch, non-bank lenders such as M&G, Aviva and Legal & General have been providing an increasing amount of longer term finance.

 

SHARE