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Northern Ireland housing association secures £100m private placement
A housing association in Northern Ireland has secured a £100m private placement from three investors.
Clanmil’s deal with Aviva Investors, iA Financial Group and the Pension Insurance Corporation (PIC) will support the delivery of the social landlord’s five-year strategy to provide a further 1,400 homes by 2026.
It will also go towards maintaining and upgrading its existing homes to ensure they are energy efficient and in good condition.
Clanmil said the package will enable it to access housing development grants from the Department for Communities, combining public and private funding to create a total investment in new homes of some £200m.
The deal marks the first time Clanmil, which owns and manages 5,600 homes for families and older people across Northern Ireland, has secured a private placement.
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The announcement comes after Clanmil presented its strategic plans to several investors in June.
PIC, a specialist insurer of defined benefit pension schemes, invested £55m in the housing association. Its investment will be split between a £25m drawdown until September 2023, and a £30m delayed drawdown until September 2024.
Eugenia Korobova, senior debt origination manager at PIC, said: “Investing in social housing 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.”
Greg Bell, executive director of finance at Clanmil, said: “We were really encouraged by the level of interest from investors and our offer was significantly oversubscribed.
“This long-term investment provides increased certainty, and we are particularly pleased to have secured it at a rate established in advance of the current economic situation.”
Carol McTaggart, group chief executive at Clanmil, said the investment is a “major vote of confidence” in the housing association and its ability to deliver its strategic ambitions.
“This money will allow us to deliver more great homes for people who need them, helping address the growing housing waiting list and strengthening communities by creating great places to live.
“This investment will bring a range of positive outcomes, including jobs and homes, and represents good business not only for Clanmil, but also for the public purse, making the public money available for new homes go much further,” she said.
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