Social landlord raises £50m from private placement market
Published by Max Salsbury for 24dash.com in Housing and also in Finance
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Social landlord Origin Housing has raised £50 million in funding from the private placement market.
The 6,000-home provider, which has a turnover of £45m, worked with Deutsche Bank and Canaccord Genuity to secure the cash from US investors lending in sterling.
The issue was twice oversubscribed with both US and UK investors bidding.
Origin says it will use the funds to build affordable homes and not to refinance current debt. To facilitate this, the provider has transferred ownership of 510 of its existing properties to a new subsidiary housing association known as Origin Housing 2 Ltd - a charitable organisation regulated by the Homes and Communities Agency.
Chief executive Karen Wilson said: “Origin Housing is committed to building new affordable homes to help meet the huge housing shortage, in London and the South East. For us to continue to do this at a significant scale, we had to look at new ways to finance our development programme. After considering all our options, it was decided that the best way forward was to seek a private placement bond and set up a new organisation, since this enabled us to maximise the use of our asset base.”