Phoenix Group and Network Homes have agreed a £70m private placement, which will see Network Homes support the development of more social and affordable housing.
The transaction includes:
- £70m of long-dated funding, maturing in 2070
- A maturity profile tailored to match Phoenix Group’s pension liabilities
- Funding to be used by Network Homes to support the delivery of its development programme of affordable homes in its primary area of operation
Phoenix Group aims to manage assets in a way that embeds Environmental, Social and Governance (ESG) considerations in its investment decision-making process.
The group’s sustainability strategy aims to safeguard the interests of customers, shareholders, and the community in which it operates long term.
“More affordable housing”
Scott Robertson, head of Phoenix Group Capital, said: “We are delighted to be supporting Network Homes and their strategic plans to deliver more affordable housing.
“This transaction demonstrates our commitment to responsible long-term investments serving an important social purpose and providing sustainable long-term cash flows to meet our pension customer liabilities.”
Read more on affordable homes:
- Work underway on first development to be built from the Trafford Affordable Housing Fund
- Gentoo to deliver homes for affordable rent at Brockwell Green in Houghton
- Affordable Homes scheme given one-year extension
Peter Benz, executive director of finance at Network Homes, added: “[We are] very proud to have established long-term relationships with Phoenix Group and Aberdeen Standard Investments, who share our strategic vision of delivering new affordable homes in line with our charitable objectives.”
Network Homes owns and manages 20,000 homes across 36 local authority areas in London, Hertfordshire, and the South East.