M&G Investments has provided £40m of long-term finance to Merseyside housing association One Vision Housing.
The 30-yearloan will allow One Vision to refinance existing bank debt held. It will is held against an element of its 11,500 portfolio and will allow the housing association to undertake new development.
M&G now has a book of £4bn through social housing investments including property, public bonds and private placements. Mark Davie, head of social housing, M&G Investments, said: “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 £4bn in UK social housing through property transactions, public bonds and private placements and we’re keen to do more.”
Banks, which pre-crisis provided funding to housing associations, are withdrawing from the market. In recent years, UK institutions have become increasingly prevalent in the social and affordable housing sectors in recent years due to the long-term, sustainable returns that can be derived from them, with the likes of Aviva Investors and Legal & General also highly active.
Roy Williams, chief executive, One Vision Housing, said: “This funding places us on a secure financial footing and will ensure we are able to fulfil our immediate and long term ambitions to develop and maintain high quality affordable homes and create a lasting legacy in our communities”.
One Vision Housing was advised by Royal Bank of Scotland and David Tolson Partnership.