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Havebury Housing Partnership, a 6,400-home association based in Suffolk, has secured £270m in funding from different sources to boost its development programme.
It has taken £75m of institutional investment from Macquarie Infrastructure Debt Investment Solutions (MIDIS), £60m in revolving credit facilities from Lloyds and £135m of restructured facilities from Barclays and RBS.
The £75m investment has a 35-year maturity, amortising from year 20. MIDIS and Havebury have also signed a shelf facility under which Havebury can request to borrow an additional £50m under similar terms.
The association intends to increase its development programme to around 1,400 homes during the next five years, of which more than 1,200 will be affordable.
Marie McCleary, director of resources at Havebury, said: “Securing the refinancing and new funding deal will make a huge difference to Havebury Housing Partnership. We now operate in 10 local authorities and the deal will enable us to continue with our business plan aims to develop 1,400 much-needed homes across the East of England over the next five years.”
Gareth Edwards, an associate director in MIDIS added: “There’s been a noticeable increase in the number of private placements by housing associations in recent months as confidence returns to the sector, supported by the UK government’s recent announcement to reintroduce the inflation-linked rent regime in 2020.”
This is MIDIS’ second private placement to a housing association after an £80m loan to Cottsway in 2015. Mr Edwards added that he expected an increase in borrowing to meet the government’s new expectations.
Terry Frain, a director at Savills Financial Consultants, which helped arrange the deal, said: “This is Havebury Housing Partnership’s first entry into the institutional investment market with £75m of long-date funding secured. All-in funding costs across the whole package have resulted in significant improvements in the cost of capital for the benefit of the business plan.”