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Welsh landlord targets investment in new and existing stock after £100m restructure
A housing association in South West Wales has outlined its investment plans after a £100m restructure that refinanced existing debt and secured new funding.
Caredig, which manages around 3,000 homes in South West Wales, has undertaken a series of transactions to transform its treasury portfolio as part of the restructure.
This includes arranging a new 25-year, £26m fixed-rate facility from Principality to refinance existing shorter-dated and more-restrictive debt.
This is alongside a new £20m revolving credit facility that has been arranged with Santander. A further £50m of existing funding has been restructured with more-flexible covenants and controls.
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The landlord said the new funding strongly enhances its treasury position, significantly reducing long-term refinancing and interest rate risk.
The money will also provide additional capacity for Caredig to invest in existing properties, including for decarbonisation, as well as increase its development programme for new homes.
Cerys Gregory, director of finance, development and governance at Caredig, said: “The new funding arrangements have placed Caredig in a significantly stronger position to implement our future strategy.
“We now have a more robust treasury platform that better supports our mission of helping to build communities where people can flourish.”
Financial consultancy Centrus acted as treasury and funding advisor.
Sam Goldman, a director at Centrus, said: “The outcomes achieved by Caredig significantly enhance its ability to meet its ambitions, with reduced risk and enhanced long-term viability.”
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