Pension Insurance Corporation has invested £100m of debt in East Midlands Housing Group.
The specialist insurer has provided a senior private placement to the housing association to develop 2,600 homes by 2023.
The finance is split into three long-dated tranches, maturing in 2052, 2054 and 2059, secured against the housing assets.
Andrew Kilby, executive director, finance, at EMH Group, said: “PIC’s expertise in structuring the funding arrangement has allowed us to closely manage our costs. This funding enables us to provide hundreds of people with the security that comes with having a roof over their heads.”
EMH Group is one of the largest providers of affordable homes and care support services in the East Midlands, with more than 20,000 properties in more than 40 local authority areas across the region.
PIC has invested more than £1.5bn into the social housing sector through debt placements to housing associations. In 2018 it invested £265m in social housing, £400m in student accommodation and £150m in commercial property. This year’s transaction including a £40m private placement to Scotland’s Eildon Housing, £40m in Northamptonshire’s Greatwell Homes Housing Association and £65m to County Durham’s Livin Housing.
Savills acted as adviser.
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