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Welsh housing association Melin Homes has struck a deal with Macquarie Asset Management for debt facilities worth £150m to deliver more than 1,000 affordable homes.
Australia-based Macquarie agreed a £50m committed facility with a 38-year tenor and an additional £100m on similar terms to be used by Melin at a later date. Interest rates on the deals were not disclosed.
Melin Homes, which owns 4,600 homes in south-east Wales, said the funding would be used to meet its target of 1,000 new homes by 2025 and its long-term growth ambitions.
Peter Crockett, deputy chief executive of Melin Homes, said: “We are delighted to have secured a long-term funding package that will help deliver our growth aspirations.
“The certainty of future costs that this brings gives added comfort and assurance to our board to aid future planning.
“Macquarie’s flexible approach and efforts to understand our business and funding needs have laid the foundations for an effective long-term partnership.”
Macquarie has provided approximately £800m of debt facilities to the UK social housing sector but the loan to Melin represents its first venture into Welsh social housing.
Hyde Housing Association recently announced that it had sold 50 homes to Beehive Affordable Homes, which has received financing from Macquarie Asset Management’s private credit team. The homes will be let to Bromley Council.
Gareth Edwards, a senior vice-president in Macquarie Asset Management’s private credit team, said: “We are very pleased to have partnered with Melin Homes, an experienced operator with a strong track record for making a positive impact on communities, in our first social housing investment in Wales.
“This financing package, which has been tailored to Melin Homes’ specific investment needs, will help its team continue their important work of delivering modern and sustainable housing to those who need it most.”
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