In a first for the sector, One Housing was able to use the increasing value of their shared ownership portfolio as security for the transaction.
One Housing is a leading developer and provider of affordable homes across London and South East England. With a visionary plan to build thousands of new homes, One Housing needed a long-term lending partner who could share that vision.
The £85 million, 25-year loan will enable One Housing to increase liquidity and develop 1,050 homes for social and affordable rent and shared ownership schemes by 2020. A further 400 properties will be built for market sale to generate profits for investment in further affordable homes. The plans are part of a wider ambition to develop 4,000 homes across all tenures over the next five years.
“This innovative loan, using the growing value of our shared ownership portfolio, will help us to build thousands more high-quality homes to meet the critical demand in London and the South East,” said Paul Rickard, Group Director for Finance at One Housing.
Mark Davie, Head of Social Housing at M&G said: “One Housing already provides much needed homes in an area of the country where affordable housing is in short supply. This is our second transaction with One Housing and will enable further developments over the next few years.”
One Housing’s first transaction with M&G Investments in 2014 was driven by a need for longer-term financing that traditional lenders to the sector were unable to support. By partnering with M&G Investments, One Housing was able to secure a £50 million, 40 year index-linked facility that was ideally suited to its long term development plans.