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Preston-based Community Gateway Association (CGA) has raised £95m through its first private placement, which is aimed at supporting its new corporate plan.
CGA, the UK’s first housing association to be led by tenants and residents, said the funds will support the building of 600 affordable rented homes by 2024 and will also repay existing debt with sole banking lender Barclays.
The deal, arranged by Savills Financial Consultants, was completed on 1 July at an all-in average cost of 2.47%.
The private placement is the latest step in CGA’s financial strategy and follows a financial restructure of the 6,600-home association in 2018 to increase its financial capacity.
Craig Garner, director of resources at CGA, hailed the deal as a “significant milestone” for the tenant-led organisation.
“We are delighted to have secured this investment, which will enable us to drive forward our ambitious development programme to build a range of high-quality, modern homes that meet the needs of residents across Preston and beyond,” he added.
Mike Roche, director at Savills Financial Consultants, said: “There was strong investor interest in the private placement and this was reflected in the low price achieved from the two investors.
“This ensures CGA is able to maximise its ability to deliver on the aims in its corporate plan.”
The placement agent on the deal was Barclays and legal advice was provided by Trowers & Hamlins.
CGA was formed in 2005 from a stock transfer of homes from Preston City Council and was established using the community gateway model to ensure local people influence the organisation’s strategy and work.
CGA is the most recent in a spate of private placements in recent months, following on from issuances by Bromford, BPHA and Your Housing Group.
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