Aberdeen Standard Investments (ASI) has financed a UK social housing landlord with a 拢50m loan to help fund the development of new homes.
The manager鈥檚 private placement team, on behalf of its strategic partner Phoenix Group, has provided the loan to A2Dominion Housing Group to help grow its development opportunities and strengthen liquidity.
ASI said this is the first housing private placement investment for Phoenix, which is keen to explore further funding opportunities in the sector.
The loan is secured against social housing assets.
Fiona Dickinson, investment director at Aberdeen Standard Investments, said: 鈥淥ur insurance and pension fund clients continue to look for cash flows over the long-term which are secured against UK social housing. A2Dominion鈥檚 strong credit rating, which is higher than the average rating in the sector, is attractive to clients.
鈥淭he bilateral approach in negotiating this privately placed investment, helped to reduce the execution risk that鈥檚 associated with public bonds, given the level of uncertainty in the market at present.鈥�
Scott Robertson, Phoenix Group鈥檚 head of financial management group, said: 鈥淲e are delighted to be supporting A2Dominion鈥檚 strategic plans to deliver more homes in Southern England.
鈥漃hoenix was able to work closely with our strategic partner, Aberdeen Standard Investments, to deliver a bespoke transaction which works well for both parties.鈥�
