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Essex landlord considers development push after raising £150m in first private placement
CHP has raised £150m through its first private placement, as its finance boss said it remained “committed to an ambitious housebuilding programme”.
The 11,700-home landlord secured the funds through a placement with five undisclosed private investors in the UK and North America.
News of the fundraising comes a month after CHP retained its A- stable rating with S&P and in the week it retained its G1/V2 rating with the regulator.
Neil Perrins, chief financial officer of the Essex-based group, said he was “delighted” by the private placement.
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“While many housing associations have scaled back on their development aspirations, we remain committed to an ambitious housebuilding programme to help address the housing crisis, alongside investing in our existing homes,” he added.
Under its 2022-25 corporate strategy, CHP is looking to deliver 1,500 new homes.
In its last full year to March 2024, the landlord completed 252 new homes and invested in improvements to around 2,300 properties.
The private placement used CHP’s sustainable finance framework, which was established in 2022.
Mr Perrins said the private placement was “nine times oversubscribed” than its original requirement, which he said reflected the “clarity and strength of the CHP story”.
The landlord’s first venture into the capital markets was in 2013, when it raised £200m through a public bond issuance. It secured another £50m through a tap of the bond in 2021.
CHP reported a group surplus of £7.4m in its last full year, off a turnover of £76.6m.
Last year, the landlord struck a deal to sell shared ownership homes to investment giant M&G.
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