The Pension Insurance Corporation (PIC) has made a £40m debt investment in a Berkshire-based provider with around 7,500 homes.
Sharelines
Housing Solutions, which was formed in 1995 after a stock transfer from the Royal Borough of Windsor and Maidenhead, said the 37-year funding would support its plans to deliver hundreds of new homes.
The association has set a target of building 350 new homes by 2026, with 70% of those for social and affordable rent, and 30% for shared ownership.
Housing Solutions operates across seven local authorities, with a significant presence in Wokingham and Buckinghamshire.
PIC, a specialist insurer of defined-benefit pension funds, was selected following a competitive process run by Centrus, the financial services company.
The pension fund was chosen as the preferred capital-markets funder in a total transaction of £100m, with the remaining £60m to be bank-funded.
David Joyce, the director of finance at Housing Solutions, said: “We are delighted to have secured a total £100m funding facility with two investment partners, including PIC, an established and well-respected funder to the social housing sector.
“We operate in an area of considerable housing need, with such close proximity to London creating high demand for safe, sustainable and affordable homes,” he added.
“As part of our planned funding strategy, this new funding facility will be used to support Housing Solutions’ growth and development ambitions to deliver 350 much-needed new homes.”
PIC has made a number of significant investments over the past few months, including a £40m loan to Kent-based MHS Homes, and a £130m debt investment in Raven Housing Trust, which works across Surrey and Sussex.
PIC was also part of a triple-investor, £100m deal to support Clanmil, the Northern Irish association, to deliver 1,400 new homes by 2026.
Celia Franch Lopez, debt origination manager at PIC, said: “Investing in the housing association sector and other illiquid assets allows PIC to generate enhanced yield, helping us to secure more pension liabilities.
“This, in turn, means more trustees can guarantee their members’ pensions through buy-ins and buyouts, greatly improving their financial security in retirement.”
