Aviva steps up sector activity with £75m funding deal for 9,000-home landlord

Settle, which manages homes across Bedfordshire and Hertfordshire, plans to use the funds to develop shared ownership properties as part of a four-year target to deliver 1,500 new homes in the region.

The 30-year deal includes deferred funding tranches at 12 and 24 months. The coupon rate was not disclosed by Aviva.

It comes after Aviva Investors last month arranged a £60m private placement with Welsh association Coastal.

Munawer Shafi, head of structured finance at Aviva Investors, said that the social housing sector remains appealing to investors in the current climate.

“The quasi-sovereign nature of social housing makes it an attractive defensive sector in the current environment, particularly when it comes to proven operators such as Settle, which we expect to deliver strong long-term performance within the overall portfolio,” he said.

Letchworth-based Settle, which was previously known as North Hertfordshire Homes, will also use the facility to step up its environmental, social and governance (ESG) credentials. This will include ensuring its homes meet an Energy Performance Certificate standard of ‘C’ or better by 2025.