Pension Insurance Corporation has made its fourth investment in secured debt issued by MHS Homes, with £40m going to fund the development of over 600 new homes.
The specialist insurer of defined benefit pension funds’ first investment in the Kent-based social housing provider was a £40m transaction to provide over 400 homes, signed in 2016, with a further two transactions totalling £50m in 2017 and 2021.
The transaction was done on a bilateral basis, with Centrus Financial acting as arranger, as well as an advisor to MHS Homes. Addleshaw Goddard provided legal advice to PIC while Trowers & Hamlins provided legal advice to MHS.
The funding will help development of new homes and improve existing properties, in terms of energy efficiency, over the next five years.
MHS Homes group finance director Bruce Shelmerdine said: “This funding will help provide over 600 new properties in Medway and surrounding areas.
“The flexible arrangements agreed with PIC meet the requirements of our business plan and provides the long-term funding to match our aspirations.”
PIC senior debt origination manager Eugenia Korobova said: “PIC continues to be an active lender to housing associations such as MHS Homes and we expect to see more such deals as the sector responds to the requirement to be net zero housing providers by 2050.”
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