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Belfast-based HA secures £100m in debut private placement

News14 Oct 2022James Wilmore

A Belfast-based housing association has raised £100m through its first private placement to boost its housebuilding efforts. 

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Belfast-based Clanmil raises £100m through its first private placement #UKHousing #SocialHousingFinance

Clanmil Housing, which operates around 5,600 homes, secured the investment from the Pension Insurance Corporation (PIC), Aviva Investors and iA Financial Group.

 

Specialist insurer PIC has invested £55m, with the debt secured on Clanmil’s social housing assets. 

 

Across the three investors, the funds are repayable between 28 and 32 years, but Clanmil declined to disclose the interest rate. 

 

Clanmil, which is one of Northern Ireland’s largest social housing providers, said the funds will be used to support its five-year strategy which includes delivering 1,400 new homes by 2026.  

 

The housing association said the deal will allow it to access development grants from the devolved government’s Department for Communities, making a total investment in new homes of around £200m possible. 

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“We were really encouraged by the level of interest from investors and our offer was significantly oversubscribed,” said Greg Bell, Clanmil’s group director of finance.

 

“This long-term investment provides increased certainty, and we are particularly pleased to have secured it at a rate established in advance of the current economic situation.” 

 

This is PIC’s second deal in the Northern Irish social housing sector, after it invested £100m in Apex Housing Association in February. 

 

Clanmil’s private placement comes after the landlord completed a £150m refinancing of existing loans late last year. 

 

The group has a new chair as of last month. Maeve Monaghan took over from Paul Fiddaman, chief executive of Karbon Homes.

 

Last year, Clanmil appointed Carol McTaggart as its chief executive, to replace Clare McCarty, who retired after 37 years at the group. 

FinanceHousing Association/RPNorthern Ireland
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