L&G lends £50m to housing association
Published by Max Salsbury for 24dash.com in Housing and also in Development, Finance
Legal & General has loaned £50 million to a Maidenhead-based housing association, in a transaction representing the financial company's fourth major investment in social housing.
The 40-year debt facility has been secured against Housing Solutions’ existing stock, and will be used to finance the social landlord's ongoing development activities.
L&G has invested a total of £455m in affordable housing over the past 18 months.
Alex Gipson, lending manager at L&G, said: “Since its creation in 1995, Housing Solutions has demonstrated a real commitment to delivering quality affordable housing in Maidenhead and its surrounding areas. With strong operational cashflows, tight cost controls and a geographic focus, we believe its performance reflects a clear and enduring business model that supports ongoing growth and development.”
Established in 1995, Housing Solutions provides more than 8,000 homes in the South East and is aiming to deliver 1,600 new homes over the next six years.
Andrew Robertson, finance and resources director of Housing Solutions, said: “This funding has secured our medium term financial requirements by providing long-term funding to support our plans to deliver much needed affordable housing in the South East of England.
"The deferred structure allows us to deliver future developments with the assurance that funding is available and reduces the need to rely on substantial cash balances, reducing carry costs.”
L&G's other recent social housing deals include a £102m, 15-year debt facility to The Hyde Group and a £40m, 25-year debt facility to Thames Valley Housing Association.