Macquarie Infrastructure Debt Investment Solutions (MIDIS) and MUFG Bank (MUFG) are providing 拢150m (鈧�167.6m) debt financing to help a west London-based housing association grow its development pipeline.
MIDIS and MUFG have given Shepherds Bush Housing Association (SBHA) with the long-term debt facility in the form of a three-year revolving credit facility (RCF) of 拢30m, a 40-year senior secured private placement of 拢50m that refinances the RCF, and a shelf facility of 拢100m.
The funding will allow SBHA to boost its affordable and shared ownership housing provision.
Gareth Edwards, an associate director in MIDIS, said: 鈥淚ncreasingly local housing associations are looking for alternative strategies to help meet longer-term funding requirements to support further investment, which is where institutional investors come in.
鈥淭he social housing sector is highly attractive to many investors because it offers long-term, secure, regulated and stable cash flows, and delivers a strong social impact.鈥�
Sanjay Narbheram, a director of housing finance at MUFG, said: 鈥淲e see growing interest within the sector from a debt capital markets perspective, and this deal is a wonderful example of MUFG鈥檚 desire to work more closely alongside institutional investors.
鈥漈he sector continues to grow in importance for MUFG as we start to widen our client base, from both a geographical and unit number perspective.鈥�
Mohit Jain, a director of finance and development at Shepherds Bush Housing Association, said: 鈥淲e are aiming to significantly expand our development pipeline over the next few years and are very pleased with the financing achieved with MIDIS, who has taken a long-term outlook on our business, and shown flexibility and willingness to listen to our funding needs.鈥�
