Rural housing association Connexus has secured a £60m private placement with a UK investor to support the development of hundreds of new affordable homes and improve existing properties.
The transaction is structured through maturity periods of up to 15 years, with fixed-rate interest costs allowing Connexus to more easily manage its long-term financial forecasts and treasury management commitments.
Connexus, which has more than 10,000 homes across the West Midlands in Shropshire and Herefordshire, worked to broker the deal through Lloyds, treasury consultants Savills Financial Consultants and with legal support from Anthony Collins Solicitors.
Kate Smith, Connexus chief executive, said: “This investment is a huge vote of confidence in Connexus, and will help support homes, jobs and the wider economy in our rural heartlands. It will enable us to make good on planned commitments to deliver hundreds of new affordable homes over the next decade as well as supporting major refurbishment programmes, aimed at bringing older homes up to a modern standard.
“The positivity and engagement from investors and partners throughout the process has been really encouraging. It shows there is a strong collective appetite to invest in housing associations, who will play a pivotal role in delivering tens of thousands of new affordable homes over the course of this parliament and beyond.”
Andrew Cooke, director of resources at Connexus, said: “This investment will have a profound impact for our customers, helping them remain safe, warm and supported in their homes. “I am very grateful to our investor and partners at Lloyds, Savills Financial Consultants and Anthony Collins for their support. Connexus looks forward to a great relationship with our investment team going forwards."
Rory Brown, Director of Private Placements at Lloyds, said: “Connexus is a leading voice for rural affordable housing, and we are proud to support them with this important financing, which will allow new investment to continue providing good quality and sustainable housing in the UK.”
Joe Atkinson, Associate Director at Savills Financial Consultants, said: “We have worked closely with the team at Connexus to provide independent advice and support through this critical funding process. It is really pleasing to see the result, with Connexus welcoming a new investor relationship, following a heavily oversubscribed bid process. This transaction offers certainty for the organisation and important funding to support tenants across Shropshire and Herefordshire.”
Jon Coane, partner and head of funding at Anthony Collins, said: “Social purpose is at the core of our work, so we’re thrilled to support Connexus in such an important transaction which will allow them to develop more social housing, improve existing housing stock and help address head on the current housing crisis.
“As a firm passionate about improving lives, communities and society, this opportunity to support rural housing association Connexus means a great deal to us.”
