M&G Investments has loaned Greenfields Community Housing £40 mln (€45 mln) to build up to 850 new homes in Essex, UK.
Housing association Greenfields will use the 35-year loan to build more homes for rent, shared ownership and sale in the Braintree District and surrounding areas.
'Creating safe, sustainable and thriving communities is something that myself and many others at Greenfields are extremely passionate about,' commented David Hall, Greenfields’ finance and resources director.
'It is excellent news that we have secured these loans from new partners that genuinely believe in who we are and the impact we want to have on residents’ lives. I look forward to seeing the positive outcomes that these homes will have for many years to come,' Hall added.
An additional £25 mln will come from the Affordable Housing Guarantee Programme - half from an Affordable Housing Finance Bond loan and the remaining £12.5 mln from the European Investment Bank. Both are low interest, government-backed loans which will be repaid by 2047.
'Long-term financing of this kind will enable Greenfields to meet its development ambitions and provide much-needed affordable housing within the area it serves. We are proud to have invested over £6 bn in UK social housing through property transactions, public bonds and private placements,' said Mark Davie, head of social housing at M&G.
