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Mosscare St Vincent’s lands first private placement deal

News31 Jan 2022James Twomey

Housing association Mosscare St Vincent’s has agreed its first-ever private placement, in a £140m deal that will see it invest in new and existing homes.

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A Mosscare St Vincent’s development in Halifax (picture: Mosscare St Vincent’s)
A Mosscare St Vincent’s development in Halifax (picture: Mosscare St Vincent’s)
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Housing association Mosscare St Vincent’s has agreed its first-ever private placement deal worth £140m that will see it invest in new and existing homes #UKhousing #SocialHousingFinance

Funding was provided by one North American and two UK-based institutional investors, according to the association, although it would not disclose the identity of the investors.

 

The coupon rate, margin and term length were also not disclosed.  

 

Mosscare St Vincent’s said it plans to increase its development programme of mixed-tenure homes to 1,500 homes between 2021 and 2025.

 

The 8,500-home housing association also said it is on track to ensure all its existing homes reach at least Energy Performance Certificate (EPC) EPC C by 2030, with the funding set to invest in existing and new homes in its communities in Greater Manchester, Lancashire and West Yorkshire.

 

The landlord has pledged to invest in 1,000 new sustainable homes.

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Helen Rourke, executive director of finance at Mosscare St Vincent’s, said: “The need for good-quality, affordable homes and the services and support we provide to our customers has never been greater.

 

“We remain committed to tackling issues such as homelessness, poverty and social exclusion, creating positive life chances for people, and playing our part in tackling the housing and climate crises.

 

“The new funding will enable us to grow and deliver against our ambitious development plans, as well as invest in our existing homes and services.

 

The landlord confirmed that the private placement is not linked to any specific sustainability measures and that confidence in its sustainability strategy drew the interest of investors.

The transaction was completed in December 2021, and the first drawdown of funds occurred in January 2022.

 

Barclays acted as sole placement agent on the transaction, while Savills Financial Consultants acted as financial advisor.

 

Trowers & Hamlins and Morrison & Foerster acted as Mosscare St Vincent’s legal counsel, while Addleshaw Goddard represented the investors.

 

Savills UK was the valuer.

 

Mike Roche, director at Savills Financial Consultants, said: “The private placement deal struck by Mosscare St Vincent’s is further evidence of the continued strong investor demand to provide funding to housing associations across the country.”

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