Finance package put in place

£35m housing deal agreed for Port of Leith

Port of Leith housingPort of Leith Housing Association has secured a £35m private funding facility to support its plans to build more than 480 homes for social and mid-market rent in Leith and North Edinburgh by 2020.

The deal, which is one of the first of its kind, combines a revolving credit facility with Bank of Scotland and a private placement with Canada Life Investments.

The Association has been supported by Capita, as treasury advisers, and Harper Macleod as legal advisers.

This 30-year private bond issue will enable finance to be drawn down in stages over the next two years, providing the private finance element to support new development over the next four years.

The deal marks the start of a new relationship between the three parties.

Keith Anderson, chief executive for the port association, said: “The mix of short-term funding with a longer-dated private placement provides us with a flexible and tailored finance package to support our needs.”

Chris O’Neill, relationship manager in the social housing team at Bank of Scotland, said: “This new funding demonstrates the appetite the investment community has for the sector and shows how a combination of conventional funding and private placement can provide tailored and flexible funding arrangements for housing associations.”

David Marchant, who heads up Canada Life Investments, said: “The team at Canada Life Investments has worked with numerous housing associations over more than 20 years. Over that time we have developed a variety of funding solutions to meet our borrowers’ needs and we are delighted to have put in place this long term relationship with Port of Leith.”

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