M&G Investments has provided GBP40 million of long-term finance to Merseyside housing association One Vision Housing.
The 30-year private placement allows One Vision Housing to refinance existing bank debt, fulfil its development ambitions and continue its regeneration work.
One Vision Housing provides more than 11,500 homes across Sefton, Merseyside.
Until the financial crisis housing associations generally relied on banks and The Housing Finance Corporation to meet their external funding requirements. In recent years non-bank lenders such as M&G are providing an increasing amount of longer-term finance as banks withdraw from this market.
Roy Williams, chief executive, One Vision Housing, says: "This funding places us on a secure financial footing and will ensure we are able to fulfil our immediate and long term ambitions to develop and maintain high quality affordable homes and create a lasting legacy in our communities.”
Mark Davie, head of social housing, M&G Investments, says: “Our pension fund clients continue to seek cash flows over the long-term which are secured against residential property. M&G has now invested over GBP4bn in UK social housing through property transactions, public bonds and private placements and we’re keen to do more.”
One Vision Housing was advised by Royal Bank of Scotland and David Tolson Partnership.