New Charter looking to raise £200m
ONE of the region’s largest social housing providers is looking to raise £200m over the coming months to build more homes to rent.
East Manchester-based New Charter, which has annual turnover of more than £100m, 1,000 employees and owns and manages 19,500 homes, mostly in Tameside.
It said it is “in discussions” with major lenders and is aiming to have a deal completed by the end of the summer.
Its ability to raise new funds – possibly on the bond market as other regional social housing providers such has Great Places Housing Group have done – will be strengthened by two recent independent assessments of its financial health.
The first, from its regulator, the Homes and Communities Agency, concluded that the group “meets the requirements on viability …and has the capacity to mitigate its exposures effectively”. It awarded the group the highest possible rating – V1.
This was confirmed last week by international credit ratings agency Moody’s, which gave it an A2 rating.
Martin Frost, the group’s deputy chief executive, said: “Since 2000 when New Charter was formed, keeping firm control of our finances has been crucial. It has meant that we have been able to deliver all the promises we have made to our tenants.
“Confirmation of this by our regulator and one of the leading independent agencies is not unexpected, but extremely pleasing nonetheless. We are 99% certain we are going down the capital markets route as long term bank funding for businesses like ours is not available.”
Chief executive Ian Munro added: “This is excellent news. We can now look forward to meeting the rising demand for quality homes for rent and have ambitious plans to build well over 1500 homes in the next few years.”
