Aberdeen Standard Investments (ASI) has financed a UK social housing landlord with a £50m loan to help fund the development of new homes.
The manager’s private placement team, on behalf of its strategic partner Phoenix Group, has provided the loan to A2Dominion Housing Group to help grow its development opportunities and strengthen liquidity.
ASI said this is the first housing private placement investment for Phoenix, which is keen to explore further funding opportunities in the sector.
The loan is secured against social housing assets.
Fiona Dickinson, investment director at Aberdeen Standard Investments, said: “Our insurance and pension fund clients continue to look for cash flows over the long-term which are secured against UK social housing. A2Dominion’s strong credit rating, which is higher than the average rating in the sector, is attractive to clients.
“The bilateral approach in negotiating this privately placed investment, helped to reduce the execution risk that’s associated with public bonds, given the level of uncertainty in the market at present.”
Scott Robertson, Phoenix Group’s head of financial management group, said: “We are delighted to be supporting A2Dominion’s strategic plans to deliver more homes in Southern England.
”Phoenix was able to work closely with our strategic partner, Aberdeen Standard Investments, to deliver a bespoke transaction which works well for both parties.”
