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Link secures £45m loan
An institutional investor has provided a £45 million loan to a Scottish housing association in the first deal of its kind in Scotland.
The 31-year deal between 6,000-home Link Group and M&G Investments is the first time a Scottish social landlord has completed a bilateral investment deal with an institutional investor.
Edinburgh-based Link Group said it would use the cash to refinance some of its bank debt and develop more homes. Most Scottish housing associations rely on banks and the Housing Finance Corporation for investment, however 48,000-home Wheatley Group announced plans to raise £500 million through the capital markets in September.
Craig Sanderson, chief executive of Link Group, said the loan ‘will enable Link to accommodate many more families in housing need’.
Mark Davie, head of social housing at M&G Investments, said the company was ‘keen to do more’ to invest in social housing.