Welsh housing association secures £25m loan from building society

Principality Commercial provides finance for both investment and development schemes in the commercial and residential sectors, including supporting housing associations.

Sarah Lavender, relationship manager for Principality Building Society, said: “This funding will go some way to help improve the affordable housing need in South Wales, as well as foster the growth of strong communities in Wales.”

Chris Judson, interim director of finance, investments and development at Hafod, said: “The transaction went very smoothly. We are thankful to Principality for this and for the support of our treasury advisors, Centrus and Devonshires solicitors.

“We are really looking forward to working with Principality going forward, and delivering desirable and sustainable homes and communities across South Wales.”

Hafod is also part of the Welsh Housing Partnership (WHP), which also includes housing associations Coastal Housing Group, Grŵp Cynefin and Pobl Group.

WHP recently refinanced £68m of bank debt for its second vehicle. It owns 573 properties across Wales, which have been leased to the social landlords and then to tenants.

WHP2 is the partnership’s second vehicle, formed in 2016 after WHP1 closed to new acquisitions. It owns 573 properties across Wales, which have been leased to the social landlords and then to tenants.

“The structure is leveraged and capital efficient, increasing the supply of much-needed low-cost homes without consuming the inherent investment capacity of the partners,” WHP said.

“Risk has been reduced, while negotiated covenants ensure the vehicle’s efficiency.”