Aspire Housing has secured a £266.5m funding package to boost new housing delivery.
The housing association, based in Newcastle-under-Lyme, has agreed a £145m sustainable private placement with four investors, and has renewed a £96.5m loan with Lloyds and a £25m loan with Barclays.
The private placement was oversubscribed, with strong demand from investors in the UK and North America. It has an overall weighted average cost below 2.5%.
The private placement is linked to sustainable targets. These include providing new affordable housing in an area of social deprivation, building homes with an EPC rating of C or higher and investing in existing stock to improve energy efficiency.
Aspire aims to invest £207m in its development programme, to deliver 1,400 homes in five years.
The housing association was started as part of Newcastle-under-Lyme Borough Council. It was transferred out in 2000 and currently has 9,000 homes across Staffordshire and Cheshire, including a large legacy portfolio of specialist housing for the elderly.
Mark Thrasher, executive director of finance at Aspire Housing, said: “Securing this new funding will enable the group to continue to grow through the provision of new housing. But it will also enable us to continue to invest in our existing homes, to re-provide outdated and inefficient homes with new energy-efficient, spacious places to live.”
NatWest acted as sole agent on the private placement. Aspire Housing was advised by Savills Financial Consultants.
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