M&G Invesment lend a £40m loan to the housing union that wants to build new homes. The company was the first long term institutional investor to make a bilateral invesment in a Scottish housing association.
Queens Cross Housing Association has secured the funding to help transform the Hamiltonhill area of Glasgow into a new urban suburb. The Hamiltonhill development is on schedule to start on-site in the spring. The plan is to build 300 affordable homes for rent and a further 300 new build homes for sale.
With the loan, the existing debt of the housing union will be restructured. The loan will allow the union to explore other development opportunities in the region and make more money.
Glasgow City Council will also be a key partner and funder delivering the project as part of the Glasgow Canal Regeneration Partnership area. The financing is the housing association’s debut private placement transaction.
Mark Davie, the head of social housing at M&G Investments said, “This transaction will deliver sustainable long-term returns to our pension fund clients, secured against residential property.”
“M&G has now invested over £6bn in UK social housing and we are always looking for more opportunities to invest, to help address the shortage of affordable homes across the country,” Davie added.
Fulya Altunyay/ [email protected]