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G15 landlord secures £150m via mix of UK and North American private placements

Network Homes has agreed £150m in private placements, which have a range of maturities, with a group of institutional investors from the UK, US and Canada.

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Picture: Getty
Picture: Getty
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G15 landlord secures £150m via mix of UK and North American private placements #ukhousing

@networkhomesuk makes second venture in North American private placement market #ukhousing

The 20,000-home South East-based landlord agreed £70m of secured borrowing, plus £80m of unsecured borrowing with maturities ranging from 15 to 30 years.

Network Homes originally looked to borrow £100m but upsized to £150m following strong demand from both UK and North American investors with both unsecured and secured notes coming in three times oversubscribed.

The transaction represents Network Homes’ second venture in the private placement market following a £175m deal with North American investors in January last year, which also involved a mix of secured and unsecured borrowing.


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Network Homes’ deal is the latest in a spate of private placements achieved by other housing associations including Bromford, BPHA and Community Gateway Association.

The placement, arranged by Japanese bank Mitsubishi UFJ Financial Group (MUFG), will be used to support the delivery of Network’s strategic objective of maximising growth within its resources, the housing association said.

Peter Benz, executive director of finance at Network Homes, said: “We have been helpfully guided by MUFG and are proud to have achieved this outcome in the midst of lockdown on both sides of the Atlantic.

“This new funding will be invested in building thousands of affordable homes for future generations of people who need them and improving the communities for our existing residents.”

The landord aims to build 2,800 new homes across London and East Hertfordshire between 2020 and 2023.

Anup Dholakia, director of treasury at Network Homes, said the deal represents “fantastic value” and “builds upon the success of our previous transaction through strong and flexible orderbooks from both investor bases, with pricing comparable to public level issuances”.

Trowers & Hamlins provided legal support on the deal.

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