Aviva Investors has completed a £37.5m private placement with Welsh social housing landlord Wales & West Housing.
The 30-year facility will be used by the housing association to deliver 2,500 new homes over the next five years, the majority of which will be social rented homes.
It will also allow Wales & West to pursue its decarbonisation programme across its portfolio of 12,000 homes, which it is working on in partnership with the Welsh government.
Aviva, which made the investment on behalf of its Aviva UK Life annuity business, also expects the investment to generate a stable cashflow with enhanced returns given the current low-interest, low-yield environment.
“Beyond the relative value we see in the sector over the long-term, social housing has an important role to play in society through the provision and development of new affordable homes and we are pleased to support its experienced management team through our investment activity,” said Munawer Shafi, head of structured and private debt at Aviva Investors.
“Wales & West is also particularly focused on improving the energy efficiency of its homes, something we see as important as we look to decarbonise our investment portfolios. As such, it fits well with our desire to seek out investment opportunities that can generate good investment outcomes for our clients, whilst having a wider positive impact at a community and environmental level.”
Ashish Dafria, chief investment officer at Aviva UK Life, added: “We believe it is important that our investments not only provide consistent cashflows to meet our liabilities, but also have a positive impact beyond our business and into wider society. Wales & West is a significant provider of social housing and we are very pleased to support its long-term ambitions, at a time when the need for greater affordable housing provision is becoming increasingly apparent.”
The investment into Wales & West is Aviva Investors’ third into the UK’s social housing sector this year, having agreed a £60m deal with Coastal Housing Group in July and a £75m placement with settle housing in August.
To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette
