Bury St Edmunds-based Havebury Housing Partnership secures £210m deal to build over 1,000 affordable homes
A Suffolk affordable housing provider has secured a £210 million funding deal to build more than 1,000 new homes.
The funding for Havebury Housing Partnership, based in Bury St Edmunds, will support its corporate plan for 250 new affordable homes per year to 2028.
The money, from refinancing and securing new long-term debt, will also go towards upgrading the energy efficiency of all its 7,000 homes to EPC (Energy Performance Certificate) level C by 2030.
Working with Savills Financial Consultants, the funding includes a £150 million private placement provided by Pension Insurance Corporation and Macquarie Asset Management, as well as a £60 million revolving credit facility from Lloyds Bank.
Marie McCleary, Director of Resources at Havebury Housing Partnership, said: “We are delighted to have secured additional funding to continue providing new homes, to meet the affordable housing shortfall in the communities where we operate.
"We look forward to working with new and existing funders in meeting our sustainability ambitions for current and future homes."
Havebury said there was 'significant investor demand' for the private placement, with more than four times the initial offering of £80 million being sought by investors, allowing Havebury to upsize to £150 million
Mike Roche, Director at Savills Financial Consultants, said: “It is really pleasing to see the great story that the team at Havebury has to tell translate into such strong investor support.
"The fact that Havebury received offers for over four times the amount it was seeking through its private placement shows how well the team has communicated its place making plans."
The housing provider was formed in 2002 with the transfer of just under 6,000 council homes from St Edmundsbury Borough Council.
Since then, it has developed more than 1,700 new affordable homes and has a growing construction programme.
Rory Brown, Director of US Private Placements, at Lloyds Bank, said: “We are delighted to have led both the loan and capital market financings that will provide Havebury with support for future development in years to come.
"The success of the private placement reflects the strong support from the market for Havebury, attracting long-term capital from both UK and US investors and a funding profile that balances the current attractive interest rate environment with future financing needs."