One Housing has secured £150m to expand their housing, care and support portfolio across London and the South East.
The funds include a mixture of secured and unsecured finance ranging from 10 to 20 years at a blended interest rate of just under 2.84%, which were raised by approaching North American investors as well as those in the UK.
For the secured funds, One Housing used a Numerical Apportionment Basis (NAB) security structure, which is said to be the first time it’s been applied in a private placement market transaction.
The group has announced that the finance will be put towards the delivery of their Corporate plan to develop 5,000 new homes over the next 10 years, alongside expanding their care and supported housing offer.
MUFG Securities and NatWest Markets acted as Joint Agents on this Private Placement transaction, with Centrus Financial acting as treasury advisors.
One Housing’s Chief Financial Officer, Ebele Akojie said that the funding “demonstrates investors’ confidence in the diversity of One Housing’s service offering” and a “commitment to sustainable growth”.
Mark Wells, Head of Structured Debt Capital Markets for MUFG in EMEA, added: “US investors again provided a competitive alternative to the UK market with significant funding flexibility, meaning One Housing achieved a very strong outcome despite challenging market conditions.
“We at MUFG were pleased to bring a new investor to the sector, and it is especially encouraging to see not only the increased demand for UK social housing in the US but also the ability of investors to meet borrowers bespoke funding requirements.”