Aviva Investors has completed a £75m private placement with settle housing association.
The 30-year facility includes deferred funding tranches at 12 and 24 months.
It is the second debt deal this year, following a £60m placement for Coastal Housing Group in July.
settle manages more than 9,000 homes across Bedfordshire and Hertfordshire.
It will use the finance to upgrade its portfolio, ensuring all homes meet EPC level C criteria by 2025. It will also support the housing association target to deliver 1,500 new homes by 2024, with a focus on shared ownership.
The investment supports Aviva Investors’ focus on generating long income exposure, providing cashflows to back the liabilities commitments of its institutional clients.
Munawer Shafi, head of structured and private debt at Aviva Investors, said: “The quasi-sovereign nature of social housing makes it an attractive defensive sector in the current environment, particularly when it comes to proven operators such as settle, which we expect to deliver strong long-term performance within the overall portfolio.”
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