FINANCE: Estuary Housing Association has struck a £40m funding deal with M&G Investments to build 400 homes in Essex and east London.
The 30-year private placement enables Estuary to fulfil its development ambition to construct 400 homes over the next three years.
Half the homes are to be built in London boroughs and the remainder will be in Essex.
Estuary Housing Association chief executive Paul Durkin said: “This deal enables us to plan to expand our business with confidence, as the funding supports our development programme of more than 100 new homes each year.
“The process of raising funds through a private placement was new to Estuary and we are very pleased that we have been able to raise funds at a favourable rate that enables us to meet our social purposes through the provision of much-needed affordable homes in areas of acute need.”
There is a 12-month deferral on £20m of the financing; Santander GBM assisted Estuary in arranging the agreement.
