Clyde Valley Housing Association (CVHA) has secured a £70million Private Placement deal with Canada Life to support the delivery of 700 new homes across Lanarkshire for social rent.
This investment means that CVHA will own nearly 5000 homes by 2023.
The Association has been supported in securing this deal by Lloyds Capital Markets and legal advisers Harper Macleod (legal advisors) and the 32-year Private Placement will enable finance to be drawn down in two stages with £35m available in June 2018 and £35m being drawn in Oct 2020.
Shirley MacDonald, director of finance who led negotiations, said: “The association has restructured its loan portfolio as part of our strategy to achieve a mixture of short and long-term funding to meet our development aspirations. I have been delighted to work with Canada Life, who have provided funding for more than 20 years to housing associations, and have a strong understanding of the sector allowing them to provide funding at very attractive rates.”
Allan Murray, CVHA chairman added: “We are pleased that Canada Life has chosen to invest in CVHA. This funding will allow us to meet the future needs of people in Lanarkshire who desperately need new rented homes. We continue to rise to Scottish Government’s challenge to support the delivery of 50,000 new homes during the life of this Parliament.
“We are grateful to our existing funding syndicate for supporting the restructured facility allowing us to secure this new deal.”
David Marchant, CIO at Canada Life, also said the company is pleased to enter into a long-term relationship with the assocation.
He added: “We have a long track record working with housing associations providing a variety of funding solutions and we look forward to working with the association over the term of the private placement.”