Authorized & Normal (L&G) has elevated its publicity to housing associations inside its personal credit score portfolio, with a £75m funding into Cottsway Housing Affiliation.
L&G’s asset administration workforce invested on behalf of the group’s institutional retirement enterprise.
L&G’s personal credit score portfolio manages round £18.6bn of investments on behalf of institutional purchasers globally, encompassing actual property debt, infrastructure debt, company debt and various debt.
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Housing associations symbolize a core a part of L&G’s personal credit score portfolio, equating to a complete funding of round £1.75bn.
“Cottsway, and different housing associations, have deep roots in communities throughout the nation and play an integral position in tackling the housing disaster and we’re happy to help them,” stated Anna Szypkowska, funding supervisor, L&G Company Non-public Credit score.
“Lending reminiscent of it is a prime instance of how institutional traders’ long-term affected person capital can ship investments that profit society for successive generations, growing the provision of properties within the communities that want them most.”
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Cottsway develops inexpensive housing in West Oxfordshire, Gloucestershire, Wiltshire, and Worcestershire. It really works in partnership with Properties England, a public physique that funds inexpensive housing.
It is going to use the £75m funding predominantly to refinance present financial institution debt at decrease charges.
Over the subsequent 5 years, Cottsway plans to speculate round £150m in new developments which ought to ship an additional 833 properties to assist handle the housing disaster within the UK.
“Cottsway was launched to L&G by Centrus, our Treasury Adviser,” stated Richard Reynolds, chief govt of Cottsway.
“This funding is a component a serious re-finance programme for Cottsway which has allowed us to repay legacy debt and secures our company ambition to supply extra properties within the communities we serve. We’re delighted to have L&G alongside us and stay up for constructing a partnership for the longer term. We’re additionally delighted to have been working with Centrus who’ve been an enormous help.”
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Tom Archer, assistant director at Centrus, stated: “We’re delighted to have organized this new funding between Cottsway and L&G. This transaction varieties a part of a wider refinance of legacy debt which has unlocked capability and lowered curiosity prices, serving to Cottsway to proceed the good work that they do of their communities. It has been a pleasure to work with each Cottsway and L&G.”
