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Housing association strikes £85m deal with investment manager
One Housing has borrowed £85m to build 1,450 homes in a long-term deal with investment manager M&G Investments.
The association plans to use the 35-year loan to build 1,050 homes for social and affordable rent, shared ownership homes and an additional 400 homes for market sale by 2020. The longer-term plan is to build 4,000 homes across all tenures over the next five years.
A spokesperson for M&G said the deal is unusual because a high proportion of the collateral is made up of shared ownership homes.
Paul Rickard, group director for finance at One Housing, said: “This innovative loan, using the growing value of our shared ownership portfolio, will help us to build thousands more high-quality homes to meet the critical demand in London and the South East.”
Mark Davie, head of social housing at M&G, said: “One Housing already provides much-needed homes in an area of the country where affordable housing is in short supply. This is our second transaction with One Housing and will enable further developments over the next few years.”
M&G has struck a number of deals with housing associations over recent years, including Stafford and Rural Homes and Regenda, and has invested over £6bn in social housing.
