M&G Investments has completed a £50 million (€59.4 million; $65.5 million) debt financing of a UK care home provider.
The 35 year-long private placement will assist Stafford and Rural Homes (SARH) in carrying out its plan of building 600 homes by 2021 as the company attempts to answer increasing housing needs in the UK. Santander served as a placing agent on the deal, while Anthony Collins Solicitors provided legal advice.
A self-described “social landlord”, SARH manages 6,000 homes across the West Midlands.
Mark Davie, M&G’s head of social housing, said: “Financing of this type for housing associations enables them to contribute towards meeting the growing demand for affordable homes in their local communities.”
Craig Jones, director of finance at SARH, said: “This competitive deal provides a strong platform for SARH to continue to develop quality affordable homes.”
M&G declined to comment further on the deal, but it is understood to be the fifth completed this year through its social housing team. Since 2007, the team has been targeting investment sizes of between £20 million and £40 million, although it is flexible upon certain demands. In total, the firm has invested £6 billion in UK social housing projects.