Housing group raises £100m for building plans

A housing group which owns thousands of homes across the East Midlands and has an office in Nottingham has secured significant investment that it says will help it achieve its plans to build around 750 new homes a year for the next five years.

Longhurst Group, which owns and manages over 23,000 properties across the Midlands and East of England, has raised £100m following the sale of its 2,043 retained bonds.

The bonds, originally issued by the Group’s funding vehicle Libra 2 Treasury PLC in 2018, were launched on Wednesday, 4 March following a series of investor meetings the previous week.

The bond sale was four and a half times oversubscribed and achieved an all in reoffer yield of 2.339%.

Strong performance in a number of areas, including rent arrears, tenancy sustainment, development and shared ownership sales, combined with the clear and ambitious vision of the Group’s Improving Lives strategy, created an impressive level of investor appetite.

Longhurst Group deputy chief executive and chief finance officer, Rob Griffiths, said: “We are very pleased to have achieved such a significant level of investment and at a really competitive rate.

“The sale of these retained bonds provides the Group with further liquidity that ensures we are in an even stronger position to realise our development ambitions and build around 750 new homes each year between now and 2025.

“As illustrated by the level of investor appetite, as well as the recent retention of our G1/V1 status, our strong financial footing, alongside strong governance and a robust approach to managing risk provides the solid foundations that will enable the Group to realise its future ambitions.

“These foundations will help us continue as a leading housing group and developer while investing in our communities and enhancing our services to do everything we can to improve people’s lives.”