Derbyshire housing association lands £102.5m funding deal

A Derbyshire and Cheshire housing association has landed a £102.5 funding deal that will help the firm build around 500 homes by 2028.

Peaks & Plains has agreed the deal with Avia Investors (£72.5m), along with a refreshe revolving credit facility from Barclays. The company will now press ahead with its plans for communities across three local authority areas in Cheshire, as well as in Derbyshire, High Peak in the East Midlands, and the North West of England.

Jules Booker, director of resources at the 5,200-home association, said: “Thanks to the hard work of everyone involved in this deal, Peaks & Plains is now in a better position to be able to fund the new homes the members of our communities want and need.

“The new deal with Aviva Investors and Barclays has enabled us to restructure our existing loan portfolio and extend our existing liquidity lines. This has helped to make us an even more resilient organisation that can create great places to live in the areas in which we operate.”

Munawer Shafi, head of structured finance & private debt at Aviva Investors, said: “Social housing has an increasingly vital role to play in providing affordable homes to communities, and also offers investors a good deal of value relative to other sectors. As we continue to build our external client base, there has been a material uptick in the number of those who recognise the power of their investments to do good and create positive social outcomes, whilst also capturing financial returns. The ability of social housing to provide solid cashflows whilst having a positive impact beyond our business and into communities makes it a compelling sector for us to increase our exposure to and to continue our support of.”

Robert Hession, Barclays relationship director, said: “We’ve been with Peaks & Plains since its inception in 2006 and we’re delighted to continue our partnership and support. This new finance package will enable the business to continue on its growth trajectory, investing in existing homes, developing new social housing and delivering for its present and future residents.”

Mike Roche, director at Savills Financial Consultants, said: “It has been great to work on this new deal for Peaks & Plains Housing Trust, knowing that it will play a part in helping the team there to push ahead with plans that will benefit communities in Cheshire, Derbyshire and beyond. Here at Savills Financial Consultants, we continue to be heartened by investors’ interest in supporting housing delivery across the UK regions.”

Natalie Swales, senior solicitor at Devonshires, said: “We are delighted to have been able to support Peaks & Plains Housing Trust in securing this long-term funding with Aviva Investors. This will allow Peaks & Plains to deliver on its development ambitions over the coming years and increase the supply of good-quality social housing in and around East Cheshire and the High Peak for years to come.”