Asset manager M&G Investments has provided North London-based Christian Action Housing Association with a £50 million (€63.1 million; $78.2 million) loan for the development of 260 new homes.
The 30-year private placement will allow the Enfield-based housing association to repay debt and fulfill its long-term development ambitions by adding to its existing 1,500 home portfolio. It operates in Enfield, Barnet, Haringey and Waltham Forest in north London.
Institutional lenders such as M&G, Legal & General and Aviva have been active in the social housing lending sectors as they look to match their requirement for long-dated income for their policy holders from their lending.
In August M&G agreed a similar deal, providing One Vision, a Merseyside housing association, with a £40 million 30-year loan.
Mark Davie, head of social housing at M&G Investments, said: “M&G has now invested over £5 billion in UK social housing through property transactions, public bonds and private placements and we’re keen to do more. Our pension fund clients continue to seek cash flows over the long-term which are secured against residential property.”
Centrus advised Christian Action on the refinancing.