BlackRock has participated in a £275 million ($346 million; €323 million) debt package supporting the financing of a housing project in Manchester, UK.
In partnership with institutional investors, BlackRock is committing debt to Trafford Housing Trust, a UK housing association. The deal attracted BlackRock because the housing association’s properties have been rewarded with the “highest regulatory grading” from the Homes & Communities Agency (HCA), according to a statement from the firm.
Under the terms of the agreement, approximately 2,000 homes will be built across four years.
Savills Financial Consultants arranged the deal, which involves Lloyds, Pension Insurance Corporate (PIC) and Yorkshire Building Society.
BlackRock and PIC provided £75 million each and Yorkshire Building Society supplied a £25 million loan. Lloyds provided a £100 million revolver facility.
Jonathan Stevens, head of European infrastructure debt at BlackRock, said: “This financing provides an excellent opportunity to invest in the UK social housing sector, which is an essential service and provides our clients with an inherently stable, long-term cash flow profile.”
Larry Gold, chief executive of Trafford Housing Trust, said: “The trust is a financially strong group of companies and this deal demonstrates great confidence among funding in the trust’s governance, leadership and ambitious growth strategy.”