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London landlord secures £13.2m loan from bond aggregator
London-based landlord Soho Housing has agreed a £13.2m loan from MORhomes to support its acquisition of new homes in the capital’s centre.
The bond aggregator said it had tapped its £440m 2038 benchmark bond to make the loan, which is its first to a housing association that has fewer than 1,000 homes.
The bonds were issued under MORhomes’ £5bn euro medium-term note programme’s sustainable bond framework and priced at a yield of 5.7286%.
Jane Harrison, finance director at Soho Housing, said the loan would be used to support investment in existing properties, as well as new acquisitions.
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Andrew Morton, chief executive of MORhomes, said: “Markets continue to offer opportunities for borrowers who are able to move at pace.
“We are delighted to have been able to execute this deal for Soho within 48 hours of receiving the mandate, achieving a record low spread in the process.”
MORhomes said it had agreed a renewable credit line with Soho Housing in April 2024, valid for 12 months, and the provider also took out its standby liquidity agreement. This meant the new financing could be agreed quickly.
Malcolm Cooper, chair of MORhomes, added: “Our model of quick and efficient access to the market is proving more relevant than ever. Each new loan strengthens the platform and puts us in a better position to provide more loans in the future.”
The sole bookrunner on the deal was Allia C&C.
MORhomes, which is owned by 67 housing associations, said it now has 22 borrowers and a total loan book of £526m. It offers loans to shareholders housing associations in amounts from £5m upwards and completed its first issue in February 2019.
In November, Soho Housing was announced as one of 11 registered providers to have partnered with Westminster City Council to improve housing provision through a joined-up approach to working.
The partnership is a manifesto commitment of the local Labour Party, which took control of the council in 2022.
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