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GUHG secures £115m bond

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GUHG secures £115m bond

GRAND UNION HOUSING GROUP Logo

Published by Grand Union for Grand Union Housing Group in Housing and also in Communities

Social housing provider Grand Union Housing Group (GUHG) has announced a major capital markets issue, securing the future of its development programme beyond 2015. 

The Group which includes Aragon HA, MacIntyre HA and South Northants Homes, was over-subscribed and eventually closed at an all in cost of 4.661% reflecting the keen investor interest in the Group and the strong rating by Moody’s.

The £115m bond will be deployed across the Group supporting investment in its stock and its annual development programme of around 165 properties a year to 2018 and beyond.

Group Chief Executive Alan Humphreys said: “We are delighted at the response from investors who have clearly seen the potential for the future development of our Group.

 “We are pleased to have concluded this transaction which provides the group with low priced long term funding which has surpassed our expectations. This will enable us to strengthen the Group and continue to be the dominant provider of affordable homes in our areas of operation.

Graham Lennox, Group Finance Director, said: “We are extremely grateful to our advisers and funders for assisting us with this transaction. This highly successful outcome delivers a new flexible funding platform for the Group and provides some key new relationships which we look forward to developing over the coming years.”

The Group has been advised throughout by Savills’ Treasury Team. Mike Roche, Director at Savills, added:  “We are absolutely delighted with the positive response from investors to the Grand Union bond. This clearly demonstrates the confidence they have in the Group, its management and its track record of delivering high-quality homes.”

Mark Webster, Chair of the Group said; “This is a fantastic result that will help us continue to deliver homes that people can afford to live in.”

 

Ends

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