CLANMIL Housing has secured £100 million in investment from three UK and US private funders to deliver 1,400 homes in Northern Ireland over the next four years, which it anticipates will create 950 construction jobs and support 1,450 other jobs in the supply chain.
It's the first private placement deal for the Clanmil housing association, which has more than 5,600 high-quality social and affordable homes across the north for families and older people.
And it comes on the back of Clanmil having successfully completed the refinancing on more advantageous terms late last year of £150m of existing loan facilities that were about to expire.
The investment by Aviva Investors, iA Financial Group and Pension Insurance Corporation Plc will help support the delivery of Clanmil’s five-year strategy.
By 2026, Clanmil plans to have provided a further 1,400 high-quality homes as well as investing in maintaining and upgrading existing properties to ensure they are energy efficient and are good places to live.
The package will enable Clanmil to access housing development grants from the Department for Communities, combining public and private funding to create a total investment in new homes of some £200m.
Clanmil Group chief executive Carol McTaggart said: “Investment of this scale by these three investors is a major vote of confidence in Clanmil and our ability to deliver our strategic ambitions.
“This money will allow us to deliver more great homes for people who need them, helping address the growing housing waiting list and strengthening communities by creating great places to live.
“It will bring a range of positive outcomes, including jobs and homes, and represents good business not only for Clanmil, but also for the public purse, making the public money available for new homes go much further.
“It also demonstrates that in addition to our social contribution, the social housing sector in Northern Ireland is playing an important role in bolstering and growing our economy.”
Joanna McArdle, director at Barclays Corporate Banking, which acted as placement agent on the transaction, said: “Clanmil is a long-standing client of ours, and we were pleased to support them on their debut private placement.
“This is a landmark transaction, not only for Clanmil but for NI plc, and it’s encouraging to see another Northern Ireland borrower access the international bond markets.
“The financial strength of Clanmil, as well as its experienced senior management team and board, enabled us to raise £100m from a range of blue-chip UK and international investors.”
Greg Bell, executive director of finance at Clanmil, added: “We were really encouraged by the level of interest from investors and our offer was significantly oversubscribed.
“This long-term investment provides increased certainty, and we are particularly pleased to have secured it at a rate established in advance of the current economic situation.
“We are grateful for the assistance provided by Barclays, Savills Financial Consultants, who acted as Clanmil’s Financial Advisors in agreeing the investment deal, and the legal team at Devonshires.”
