Housing group secures £100m to build affordable homes
"Along with the reaffirmation of our strong credit rating earlier this year, this demonstrates an ongoing confidence in our financial strength which means we can continue to pursue our ambitious development programme."
Andrew Kilby, Executive Director of Finance
Leicestershire-based social housing and care organisation emh group has secured a £100m loan from the Pension Insurance Corporation. The competitive deal was arranged by the group’s treasury advisors, Savills.
The first tranche of £50m was received on 9 July, and the balance will be drawn down in 12 months’ time.
The group, which manages over 20,000 homes across the East Midlands, intends to use the funds to further boost its development programme. Last year the group was appointed a strategic partner of Homes England, the government’s homebuilding agency, securing £30.5m in grant funding. This decision enabled the group to increase its development of new homes by 80 per cent, and will see around 2600 affordable homes built in the East Midlands by 2023.
Andrew Kilby, emh group Executive Director of Finance, said: “Along with the reaffirmation of our strong credit rating earlier this year, this demonstrates an ongoing confidence in our financial strength which means we can continue to pursue our ambitious development programme.
“Having the funding in place means that we will be able to manage our programme with certainty and flexibility over the next few years, giving us the ideal platform to deliver much needed new homes in the East Midlands.”