LGIM Real Assets has provided £85m in long-term financing to North East-based affordable homes provider Believe Housing.
The funding will support Believe Housing’s goal to deliver more than 1,200 new affordable homes over the next five years. The housing association, which is the first in the sector to achieve the Carbon Neutral International Standard, currently has some 18,000 homes in its portfolio, spread from the Durham coast to the Pennines.
The firm plans to use LGIM’s funding to refinance its existing debt, deliver new homes, and for general corporate purposes, including investments in existing homes.
Steve Bolton, head of private corporate debt, Europe, at LGIM, said: “This is an important transaction for LGIM Real Assets, Believe Housing, and the housing association sector more broadly. We are delighted to place decarbonisation firmly at the centre of the investment, rather than something that is talked about on the sidelines.
“Legal & General is uniquely placed to invest annuity money into the UK economy, supporting its long-term pension commitments and creating real assets which provide jobs, housing, and spur economic activity. The fundamental need for good quality, affordable homes has not changed. We are delighted to bolster our commitment to the social housing sector, and investment in the North East.”
Alan Smith, Believe Housing’s executive director of investment, growth and performance, added: “This funding will guarantee that our vision of a life without barriers can be brought to more people right across the region. It is great news for us, and the affordable housing sector as a whole, that major private sector funders share our passion for doing the right thing for customers, for the business and in this case for the environment too.”
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