In our first direct investment into the UK social housing sector we've helped Monmouthshire Housing Association secure an £85m deal to refinance its entire loan portfolio.
The deal also supports the delivery of MHA’s wider environmental, social and governance (ESG) aims.
As well as increasing affordable housing provision, the 4,000-home, stock transfer landlord is committed to a range of social and environmental targets – including cutting carbon by a further 10% by 2024 and helping 30 tenants into work each year.
The 40-year funding package will give a substantial boost to MHA's ambitious development programme and sits alongside £20m of flexible finance provided by existing lender Barclays..
“Our long-term investment in MHA is a unique deal for us and secures long-term sustainable returns which enables us to deliver on our financial commitments to our members," said Barry Kenneth, our Chief Investment Officer.
"It also showcases our in-house expertise and capabilities in portfolio management and origination, which provides a greater degree of control over our portfolio and enhances post-fee returns."
We see strong alignment between this investment and our Responsible Investment strategy in creating positive social and environmental outcomes. Our investment will support MHA’s continued focus on providing affordable housing to meet the growing needs of its local community, alongside the wider environmental and social benefits of this program.
“We're delighted to have concluded this important deal with our funding partners to support our delivery for tenants," addedJohn Keegan, Chief Executive of MHA. "It is especially pleasing to be working with the PPF on its first direct placement in the UK social housing sector.
“The PPF’s investment ethos aligns closely with our commitment to ESG principles, and the new facilities will enable us to deliver on our exciting vision of transforming lives through enabling the communities we serve to realise their personal ambitions. The fact that the PPF has invested £65m with a 40-year maturity demonstrates the confidence it has in MHA and in our future strategic direction.”