Kent-based housing association secures £40m loan from pension insurer

Bruce Shelmerdine, finance director at MHS, said: “We are delighted to have completed this fourth transaction with PIC. This funding will help provide over 600 new properties in Medway and surrounding areas.

“The flexible arrangements agreed with PIC meet the requirements of our business plan and provides the long-term funding to match our aspirations. Our ultimate ambition is to help end the housing crisis in North Kent by providing safe and sustainable homes.”

MHS was formed in 1990 after a stock transfer from Medway Council in Kent. The social landlord owns and manages around 9,500 homes in the Thames Estuary, with the majority being general needs. It also looks after more than 25,000 tenants.

Eugenia Korobova, senior debt origination manager at PIC, said: “PIC continues to be an active lender to housing associations such as MHS Homes and we expect to see more such deals as the sector responds to the requirement to be net zero housing providers by 2050.

“Investing in projects which generate social value, such as social housing, also helps protect PIC’s policyholder payments over the long term, allowing us to fulfil our purpose and benefits many of the thousands of people who will live in the homes built as result of our long-term partnership with MHS Homes.”