Housing association's private placement deal to fund 400 new homes
Published by Max Salsbury for 24dash.com in Housing and also in Development
A north east housing association is to build 400 new homes over the next three years.
Derwentside Homes has agreed a £40 million private placement deal with Canada Life Investments to finance the plans.
The 7,000-home provider is one of a growing number of social landlords applying for funding through private placements rather than traditional bonds. Private placements can be arranged quickly and allow mid-sized providers to access capital from a single investor.
Keith Tallintire, Derwentside's director of Resources,said: “Despite the recent economic conditions we are still very much focused on not only continuing to invest in our communities but also on expanding our stock by building much needed new homes.
“The private placement agreement secures the long term funding of the organisation and provides us with the flexibility required to grow the business.
“The whole process was completed relatively quickly and attracted significant interest from investors.”
Canada Life Investments' David Marchant said: “We are delighted to establish a long-term working relationship with Derwentside Homes, a financially strong and prudent housing association.
“We are pleased to support financing alternatives to small to medium sized associations.”