UK housing association Cottsway Housing Association has secured £75m (€89m) funding from Legal & General’s (L&G) institutional retirement business.
Legal & General Institutional Retirement’s investment in Cottsway will be mainly used to refinance existing bank debt.
Cottsway specialises in the development of affordable housing across West Oxfordshire, Gloucestershire, Wiltshire, and Worcestershire. Over the next five years, the housing provider plans to invest around £150m in new developments which should deliver a further 833 homes.
L&G said the investment provides an opportunity to invest in a “socially focused housing provider, helping support the delivery of much-needed housing supply”.
Anna Szypkowska, investment manager, L&G corporate private credit, said: “Cottsway, and other housing associations, have deep roots in communities across the country and play an integral role in tackling the housing crisis and we’re pleased to support them.
“Lending such as this is a prime example of how institutional investors’ long-term patient capital can deliver investments that benefit society for successive generations, increasing the supply of homes in the communities that need them most.”
Richard Reynolds, CEO of Cottsway Housing Association, said: “Cottsway was introduced to L&G by Centrus, our treasury adviser. This funding is part a major re-finance programme for Cottsway which has allowed us to repay legacy debt and secures our corporate ambition to provide more homes in the communities we serve.”
Tom Archer, assistant director at Centrus, said: “We are delighted to have arranged this new funding between Cottsway and L&G. This transaction forms part of a wider refinance of legacy debt which has unlocked capacity and lowered interest costs, helping Cottsway to continue the great work that they do in their communities.”
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