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The Australian bank Macquarie has arranged £150m of debt for the South West-based housing association Alliance Homes.
The 6,500-home association borrowed £90m in a private placement arranged by the bank as well as £60m of debt directly from Macquarie Infrastructure Debt Investment Solutions (MIDIS), the bank’s infrastructure-focused subsidiary.
According to Macquarie, the funding will help Alliance to refinance existing bank debt and build new homes in its core areas of North Somerset, Bristol and South Gloucestershire.
Gareth Edwards, associate director at MIDIS, explains: “There is a clear government directive in delivering more affordable homes at this time, and we are very pleased to have provided funding to Alliance Homes at this juncture in their evolution.
“We continue to see strong demand from investors seeking to support the UK’s social infrastructure needs.”
Alliance has already drawn all the committed funding in the form of a £70m tranche of fixed-rate funding, which will amortise over 35 years and a £20m tranche over 20 years.
Katrina Michael, chief finance officer at Alliance, said: “We are expanding our development activities over the next few years and we are very pleased with the flexibility of the financing package available with MIDIS, who has taken a long-term outlook on our business and shown a willingness to listen to our funding needs. We look forward to building a long-term partnership.”
This is the fourth financing deal MIDIS has arranged in the UK social housing sector. Its total commitments in that space are now nearly £300m and total facilities are over £550m.
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