Newcastle-based housing association Home Group has raised £100m to complete a funding drive that will enable it to build around 10,000 homes around the country.
The organisation raised £250m last March through the bond market, and has now issued another £100m with a 23-year bond at an effective fixed rate of 2.311%, the lowest in the group’s history.
Last year Home Group said the fundraising would support its target of delivering 10,000 homes by 2022.
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It said that it had seen continued support from its existing investor base with the second fundraising, as well as interest from new investors, and was oversubscribed by almost four times.
John Hudson, chief financial officer at Home Group, said: “This is a really great deal and we are delighted. Not only does this reaffirm Home Group’s strength as an organisation but it’s very good to know that investors see us as a safe and secure investment at times of wider uncertainty.
“Our treasury team had been carefully monitoring market conditions with our advisors and had identified a window of opportunity in the marketplace. Because of the high level of demand, we were able to apply some pressure in terms of pricing and achieve the excellent rate we did.”
Home Group has houses around the 海角视频, including around 15,000 homes in its North East heartland.
The company is in the process of adding to this through the development of 1,500 units in South Seaham, in County Durham, in a garden village scheme that will see it work with fellow North East firm Tolent. The National Innovation Centre for Ageing at Newcastle University and Northumbria University’s nursing school are also advising on the project.
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The bond was secured via a different route to the norm due to social distance guidelines. All presentations and communications were carried out remotely using secure digital platforms.
Home Group was supported in the process by MUFG and NatWest markets as bookrunners, Centrus as treasury advisors and Devonshires as legal advisors.
Home Group was last week named on the best places to work in the 海角视频, being ranked tenth in the “super large” category of the 2020 Great Places to Work survey.
It is also plotting a move to Newcastle city centre from its current base on the edge of the city with an application to build a new headquarters in the shadow of St James’ Park. The plans were approved by Newcastle City Council last week.