The first UK housing association to be led by residents has raised £95m in a debut private placement to support new development.
Community Gateway Association agreed the placement with two investors at an all-in cost of 2.47%. It will use the funds to deliver 600 affordable rented homes by 2024.
Some of the funds will also go to repaying existing debt with its sole lender Barclays.
CGA was formed from the stock transfer of homes from Preston City Council in 2005. The housing association has a portfolio of 6,600 homes in the North West, in Preston and the surrounding region.
Barclays was the placement agent and Savills Financial Consultants advised CGA.
Hannah Jones, relationship director at Barclays Corporate Banking, said: “The reaction from investors was strong, as befits an organisation with a strong operating track record, and allowed CGA to achieve a very attractive coupon and flexible drawing terms.”
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