Pension Insurance Corporation (PIC) has strengthened its relationship with Mhs homes by making a further £40m (€45.6m) investment in the UK social housing provider.

The specialist insurer of defined benefit pension funds said it has invested in secured debt issued by the Kent-based landlord to help fund the development of over 600 new properties.

PIC made its first debt investment in Mhs homes in 2016 in a £40m transaction to provide over 400 new properties, with a further two transactions totalling £50m in 2017 and 2021.

Bruce Shelmerdine, group finance director, at Mhs homes, said: “We are delighted to have completed this fourth transaction with PIC. This funding will help provide over 600 new properties in Medway and surrounding areas.

“The flexible arrangements agreed with PIC meet the requirements of our business plan and provide the long-term funding to match our aspirations. Our ultimate ambition is to help end the housing crisis in North Kent by providing safe and sustainable homes.”

Eugenia Korobova, senior debt origination manager at PIC, said: “PIC continues to be an active lender to housing associations such as Mhs homes and we expect to see more such deals as the sector responds to the requirement to be net zero housing providers by 2050.

“Investing in projects which generate social value, such as social housing, also helps protect PIC’s policyholder payments over the long term, allowing us to fulfil our purpose, and benefits many of the thousands of people who will live in the homes built as a result of our long-term partnership with Mhs homes.”

Centrus Financial acted as arranger and advisor to Mhs homes. Addleshaw Goddard provided legal advice to PIC while Trowers & Hamlins provided legal advice to Mhs.

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