M&G Investments is providing a £60 mln (€73 mln) loan to Jersey Homes Trust (JHT), Jersey’s largest independent housing association.
The facility will help JHT restructure its debt and fund the development and improvement of social housing, ensuring continued provision of affordable homes for Jersey residents.
Since 1995, JHT, a non-profit organisation, has built and manages over 800 homes. With M&G’s investment, the Trust plans to build another 750+ homes over the next 15-20 years, ensuring a stable cash flow for future reinvestment.
Maria Redondo, director private credit, M&G said: ‘We are proud to provide £60 mln to the Jersey Homes Trust, an organisation that has played such an important role in its community for the past 30 years. Long-term, patient capital from our institutional clients will enable them to continue to provide solutions addressing the need for social housing in Jersey.’
Phil Le Cornu, chair of JHT, added: ‘The JHT worked with a small team of advisers - Colliers Debt Advisory, DLA Piper and Ogier - to support the Trust in implementing the new funding arrangement, which was provided by M&G Investments. It will not only consolidate the work of the JHT within the Island community but secure its significance as a long-term provider of social housing in Jersey.’
M&G has become a significant alternative lender to the social housing sector. Following post-financial crisis banking regulations that reduced lending in this area, M&G now provides nearly £5 bn (€6 bn) in financing for social housing projects on behalf of its pension and insurance clients.
