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Scottish landlord agrees £114m financing deal with M&G following Wheatley merger
Dumfries and Galloway Housing Partnership (DGHP) has secured £114m of financing from M&G Investments, following its decision to join the Wheatley Group.
The flexible loan facility will enable DGHP, the second largest social landlord in Scotland, to refinance existing bank debt, which previously constrained its development and investment plans.
The deal marks M&G’s third financing agreement with a housing association in Scotland.
M&G has around £6bn invested in UK social housing through property transactions, public bonds and private placements.
In November last year, tenants of DGHP voted in favour of joining Wheatley Group, which now manages more than 90,000 homes in Scotland across all its subsidiaries.
DGHP, which owns more than 10,300 homes, told tenants it would increase its development pipeline from 250 to 1,000 homes over the next five years if they voted in favour of joining Wheatley.
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It also guaranteed residents it would cap annual rent increases across all properties at 2% if the partnership with Wheatley went ahead.
In 2018, the Scottish Housing Regulator published a regulation plan for DGHP highlighting a number of governance issues, which led to DGHP looking for potential merger partners from early 2019.
Bill Robertson, chair of DGHP, said: “This affordable loan facility is great news for tenants and communities in Dumfries and Galloway.
“Working as a partner in Wheatley allows us to do much more than we could before and this deal with M&G is one of the first steps in realising our plans to bring hundreds of new affordable homes to the region.”
Mark Davie, head of social housing at M&G Investments, said: “We are pleased to be supporting DGHP and Wheatley in the next step on their journey.
“They have a clear vision and ambition to deliver affordable homes to those in the area they serve.
“Through its wider activities, Wheatley supports the social well-being of its communities in areas such as employment, tackling poverty, digital inclusion, education, sports and the arts. The deal demonstrates the important role institutional investors play in providing finance to organisations that have a positive impact on the communities they operate in and our wider society.”
Inside Housing Development Summit 2020
Inside Housing is pleased to join forces with Homes England and the LGA to introduce the Inside Housing Development Summit.
Taking place on 27-28 April 2020, the summit will gather together local authorities, housing associations, developers, fund managers and advisors for a Chatham House style event focussed on making new connections and exploring new delivery models.
The summit will take place over 28 hours, starting with an afternoon plenary on 27 April, an exclusive development site study tour to Northstowe, England's largest new town since Milton Keynes, followed by a business dinner.
The second day will provide opportunities to network with a range of senior Homes England and LGA staff including Nick Walkley, chief executive of Homes England and Mark Lloyd, chief executive of LGA.
You’ll also meet with leaders from across the development ecosystem and take part in group discussions to help you connect and explore new opportunities. All accommodation and meals will be provided within the fee.
Places for each stakeholder group are limited to ensure a balanced mix of participants and to make sure you leave with the relationships and leads you need.
Click here to book your place or for more information
