Queens Cross Housing Association has secured £40m funding from M&G Investments for plans to transform the Hamilton hill area of Glasgow into a new ‘urban suburb’.
As part of plans, Queens Cross has announced the build of 300 affordable homes for rent on the site just north of the city’s centre, with a further 300 new build homes for sale.
The investment is also set to fund the development of a new park and green space, along with community and commercial developments to ‘transform’ derelict land.
Until 2007, housing associations generally relied on banks and The Housing Finance Corporation to meet their external funding requirements, but in recent years, non-bank lenders such as M&G have been providing an increasing amount of longer-term finance as banks withdraw from this market.
Glasgow City Council will also be a key partner and funder delivering the project as part of the Glasgow Canal Regeneration Partnership area, with developments due to commence in the Spring of 2019.
On the investment, Queens Cross CEO, Shona Stephen said: “Building a relationship with an asset management company for funding is a first for Queens Cross.
This innovative approach to securing investment is a great demonstration of our commitment to explore all avenues to secure the funds we need to help improve the lives of our tenants, and to build Queens Cross as an area people can be proud to call home.”
Mark Davie, Head of Social Housing at M&G Investments, says: “Queens Cross Housing Association is already providing much needed housing across Glasgow, supporting the local community.
“This is our third deal with a housing association in Scotland where good quality affordable homes continue to be in short supply.
He added: “This transaction will deliver sustainable long-term returns to our pension fund clients, secured against residential property.
“M&G has now invested over £6 billion in UK social housing and we are always looking for more opportunities to invest, to help address the shortage of affordable homes across the country.”