South West landlord secures £75m loan through Affordable Homes Guarantee Scheme

Loans are funded by a bond issuance programme backed by a guarantee from the government, with the lower pricing passed on to borrowers.

Venn, which manages the AHGS on behalf of the UK government, said the facility was structured to provide a loan of £50m on day one, with the option for a further £25m via deferred drawdown, allowing Selwood flexibility to access funding in line with its liquidity requirements.

The facility is allocated 50/50 between investment in new affordable homes and existing homes. The latter includes decarbonisation and improvement works.

Mark Mayler, chief financial officer of Selwood, said the 200 new affordable homes “means potentially up to 680 people off housing waiting lists or out of the private rental sector”.

“Investing in and modernising our existing homes are also important to ensure our safe, affordable housing continues on for this and future generations,” he said.

Oriane Auzanneau, deputy portfolio manager for the AHGS and managing director at Venn, said: “[Against] a backdrop of considerable market volatility, the scheme continues to provide borrowers ready access to the capital markets. The deferred element and pricing achieved continue to demonstrate the flexibility and value which this brings to the sector.” 

Earlier this month, Vivid housing association secured a £200m loan from the AHGS.