House association Melin Homes has secured a new £150m funding line to support the delivery of 1,000 more affordable homes by 2025.
Melin, which has a portfolio of 4,600 properties across five local authority areas in south east Wales providing affordable housing to more than 9,000 people, has secured the funding from Macquarie Asset Management in its first social housing investment in Wales.
The financing comprises a £50m committed facility with a 38-year term and an additional £100m uncommitted facility for use by Melin Homes at a later date on similar terms.
Peter Crockett, deputy chief executive of Melin Homes, said: “We are delighted to have secured a long-term funding package that will help deliver our growth aspirations. The certainty of future costs that this brings gives added comfort and assurance to our board to aid future planning. Macquarie’s flexible approach and efforts to understand our business and funding needs have laid the foundations for an effective long-term partnership.”
Gareth Edwards, a senior vice president in Macquarie Asset Management’s private credit team, said: “We are very pleased to have partnered with Melin Homes, an experienced operator with a strong track record for making a positive impact on communities, in our first social housing investment in Wales.
"This financing package, which has been tailored to Melin Homes’ specific investment needs, will help its team continue their important work of delivering modern and sustainable housing to those who need it most.”
Macquarie Asset Management has provided approximately £800m of debt facilities in the 海角视频’s social housing sector on behalf of its institutional clients.
Melin Homes also offers properties for sale through its home ownership scheme and subsidiary Candleston.
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Moreover, housing association Valleys to Coast Housing, which has a portfolio of 5,000 homes in the Bridgend area, has negotiated a £35m loan from bLEND Funding plc.
The deal is the first social bond issued by bLEND since launching its social bond framework in May and represents its lowest ever margin.
Law firm Clarke Willmott acted for Valleys to Coast Housing on the fundraising.
Valleys to Coast chief executive Joanne Oak said: “Through strategic partnerships we have secured long-term sustainable finance to support and deliver our 10-year ambitions laid out in our corporate plan. This will allow us to carry on providing affordable, high-quality social housing.
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Fraser MacRae, partner and social housing specialist at Clarke Willmott, said: “We are delighted to have worked with Valleys to Coast Housing to secure such a fantastic deal.
“An initial loan of £25m was drawn with the remaining £10m to proceed on a deferred basis within 12 months. The loan will mature in 2054.
“The funding will allow our client to refinance existing debt and support their general social housing work across Bridgend.”