Housing association Aspire has secured a £266.5 million funding package which will be used to boost affordable housing and help it meet its sustainability goals.
The Newcastle-under-Lyme based housing provider worked with Savills Financial Consultants to secure the funding by extending and restructuring existing debt facilities.
The 9000-home association – which works across Staffordshire and Cheshire and supports communities through its Achieve Training business and Realise charity – says the cash boost will enable it to invest £207 million in its development programme to deliver more than 1,400 mixed-tenure homes in the five-year period to 2026.
It will also help it to meet its sustainability goals which includes providing new affordable housing in areas of social deprivation, constructing new homes with an EPC rating of C or higher and investing in existing homes to increase energy efficiency.
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the provision of new housing, but it will also enable us to continue to invest in our existing homes and to re-provide outdated and inefficient homes with new energy-efficient, spacious places to live.
“We have been supported through the whole process by an excellent team of advisors who have been instrumental in securing such a fantastic deal.”
The funding package consists of a £145 million sustainable private placement with four investors, as well as renewing a £96.5 million loan facility with Lloyds and renewing a £25 million loan facility with Barclays.
NatWest acted as sole agent on the sustainable private placement issuance.
This is the second time Aspire has worked with Savills Financial Consultants to complete a private placement funding deal. The two organisations first worked together on a £205 million package in 2017.
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Mike Roche, director at Savills Financial Consultants, said: “We are really proud to be able to continue our relationship with Aspire and help the team there to achieve its strategic objectives in supporting their communities. Following our previous work with Aspire in 2017, it was able to match its ambitions to grow its development programme.
“Investors liked what they saw and were keen to support this new funding package that puts in place the foundations to allow Aspire to meet the goals in its new corporate strategy.”
George Flynn, debt and financing solutions at NatWest, added: “NatWest is delighted to have supported Aspire on this sustainable private placement issuance.
“As a leading provider of affordable housing, Aspire makes a significant and positive impact on communities which is at the core of the organisation and has a clear strategy to deliver safe, affordable and sustainable places to call home.
“We’re excited that we can actively contribute to social, economic and environmental progress in the UK by supporting customers such as Aspire and this transaction is a great example of our purpose in action.”