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Housing association borrows £75m from large US investor
A giant US investor has signed a £75m loan to a housing association, marking its third deal with the sector.
Blackrock Real Assets announced the fixed-rate deal with Greensquare Group today. The loan has a 20-year maturity and a 15-year average life.
The finance was secured against the 11,500-home association’s social housing stock and brings Blackrock’s lending to the sector to £250m.
The investor announced deals with Greater Manchester-based Trafford Housing Trust in January last year and with Glasgow’s Wheatley Housing Group in 2016 and last June.
Jonathan Stevens, head of European infrastructure debt at Blackrock, said: “We are delighted to have made this investment on behalf of our institutional clients. The transaction provides efficient financing to Greensquare while providing our clients with access to inherently stable long-term cash flows and seeks to achieve their ESG investment objectives.”
Scott Murray, finance director of Greensquare, added: “This is another hugely significant step to fund Greensquare’s strategy to develop and provide more homes and to maintain its financial strength.
"The funding is important because it removes the hurdles that were in place for financing Greensquare Homes.”
The transaction was arranged by Traderisks.
The housing association, which operates across Oxfordshire, Wiltshire and Gloucestershire, was formed through a merger in 2008.
It turns over £85.8m and had loans totalling £365m at the end of the 2016/17 financial year.
