PIC completes £130m deal with HA to build 630 homes
The Pension Insurance Corporation (PIC) has struck a £130m deal with Raven Housing Trust to develop 630 affordable homes by 2026.
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The pension scheme insurer made a debt investment with the housing association that will see 58 per cent of the homes used for social and affordable rent, with 30 per cent as shared ownership.
PIC said the deal includes a “range of maturities” that will span over a period of 30 years.
“[The] maturity profile [is] tailored to match PIC’s pension liabilities in years where it is difficult to source cash flows in the public bond markets,” it said.
The deal is a deferred drawdown, which reduces the cost of carry for the borrower and the debt is secured on housing assets.
PIC said it was chosen as sole lender following a full market tender due to its “flexibility on maturity and deferral capabilities”.
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Raven currently owns and manages 7,117 properties across 10 local authority areas in the South East of England.
Mark Baker, director of finance at Raven, said: “PIC’s investment with Raven will help hundreds of families find much-needed accommodation.
“We operate in an area of high demand, with high average house prices, and high house price growth.
“There are approximately 1,250 households currently on the waiting list for social housing in Reigate and Banstead, which is our largest local authority area.
“For shared ownership schemes, Raven typically receives three to four candidates per plot. We’re delighted to have completed this transaction with PIC, who are very experienced in helping housing associations achieve their goals, and were flexible in closing the transaction.”
PIC has invested £3.3bn in social housing across the UK since 2012, with a flurry of activity in the sector since the start of 2022.
Vladan Martinovic, debt origination manager at PIC, said: “The purpose of PIC is to pay the pensions of our policyholders over many decades, so by continuing to invest in long-dated, secure cash flows, such as our Raven investment, we are securely backing future pension liabilities.
“It has been a pleasure to deal with the team at Raven. We are proud to be able to help them develop much-needed homes, whilst at the same time securing the pensions of our policyholders.”
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