£102m financial deal will fund building of 500 new homes
Macclesfield-based landlord, Peaks & Plains Housing Trust, has secured a £102.5m funding deal to support plans to build around 500 new homes by 2028.
The finance package, struck with the support of Savills Financial Consultants, has been agreed with Aviva Investors and Barclays.
The £72.5m private placement with Aviva Investors, along with a refreshed £30m revolving credit facility (RCF) with Barclays, will enable Peaks & Plains Housing Trust to deliver on 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 and 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.”
Funders for the deal were Barclays Bank UK/Barclays Bank/Aviva Investors. Financial advisor was Savills Financial Consultants. Client legal advisor was Devonshires. Aviva Investors’ legal was Addleshaw Goddard. Barclays Bank UK/ Barclays Bank legal was Gowlings, and the valuer was Savills.
