Mosscare St Vincent’s (MSV), in partnership with Savills Financial Consultants, has secured its first ever private placement, worth £140m.
The funding, which was provided by one North American and two UK-based institutional investors, will be used to help the 8,500-home housing association maximise its capacity to invest in existing and new homes in its communities in Greater Manchester, Lancashire, and West Yorkshire.
MSV hopes to increase its development programme of mixed-tenure homes to 1,500 homes between 2021-25.
The provider is also on track to ensure all its existing homes reach at least EPC C by 2030; it says it will continually improve on this and increase the energy efficiency of its stock in the drive toward zero-carbon.
MSV said there was strong investor demand for the private placement, meaning it was keenly priced.
The funds will be used to help achieve the targets set out in its ‘MSV Way’ and Sustainability Strategy.
Although the private placement is not linked to any specific sustainability measures, confidence in the sustainability strategy was a key matter of interest for investors, according to MSV.
The transaction was completed in December 2021, and the first drawdown of funds occurred in January 2022.
Barclays acted as sole placement agent on the transaction.
Helen Rourke (pictured right), executive director of Finance at MSV, said: “The need for good quality, affordable homes and the services and support we provide to our customers has never been greater.
“We remain committed to tackling issues such as homelessness, poverty and social exclusion, creating positive life chances for people, and playing our part in tackling the housing and climate crises.
“The new funding will enable us to grow and deliver against our ambitious development plans, as well as invest in our existing homes and services.”
Charlie Norman (pictured left), chief executive at MSV, said: “This is great news for MSV and more importantly for our current and future residents.
“We are absolutely committed to investing in existing homes and services, meeting net zero carbon targets and building new homes.
“We pride ourselves on providing a diverse range of warm, safe and high-quality homes and we are particularly passionate about providing age-appropriate housing (and right-sizing), specialist independent living, spacious family homes, and first-time homes and opportunities for young people.
“The deal shows great confidence amongst funders in MSV’s values, ambitions and strong governance and we are delighted to partner with the funders to ensure we can deliver on our ambitious plans.”
Mike Roche, director at Savills Financial Consultants, said: “Mosscare St Vincent’s has ambitious plans for its current and future customers.
“The team at Savills Financial Consultants was proud to work with them to find the best ways of maximising financial capacity to deliver these plans.
“The private placement deal struck by Mosscare St Vincent’s is further evidence of the continued strong investor demand to provide funding to housing associations across the country.”
Mosscare St Vincent’s was formed in July 2017 as a result of a merger between Mosscare Housing and St Vincent’s Housing.
MSV owns and manages around 9,000 homes in Greater Manchester, Lancashire, and West Yorkshire.
Image: Mosscare St Vincent’s Southowram shared ownership scheme, Halifax
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