Grand Union secures £50m government-backed loan

ARA Venn said the sale of the bonds, which are guaranteed by the government, was completed in a “challenging capital market and economic backdrop” achieving an all-in cost of around 3.2 per cent, with pricing at 72 basis points over gilts.

Chris Bellamy, director of finance and treasury at Grand Union, said: “We are extremely pleased with the outcome of this funding round, achieving competitive pricing in a challenging capital market that is only likely to become more challenging over the coming months.”

Mr Bellamy added that it will help with the association’s aim to build up to 400 homes a year over the next five years and limit its exposure to increases in interest costs. 

In its last financial year to the end of March 2022, Grand Union posted a 22 per cent rise in post-tax surplus to £9.3m off a turnover of £85.9m, figures published last week showed. 

ARA Venn, a real estate investor owned by a Singapore-based global asset manager, was announced as the provider of the £3bn AHGS in 2020.

This year the investor has twice amended its covenant ask of registered providers for the scheme, following engagement with the sector.

Grand Union’s deal follows Berkshire-based housing association Silva Homes securing a £28.5m loan through the scheme in July.