Finance package

Housing group secures £190m finance package



Shepherds Bush Housing Group (SBHG) has secured a £190m finance package to help deliver 2,000 homes by 2028.

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The package has been supported by three banks with £40m coming from AIB and £150m from Macquarie Infrastructure Debt Investment Solutions (MIDIS) and MUFG Bank.

The MIDIS and MUFG package is a new long-term debt facility in the form of a three-year revolving credit facility of £30m, a 40-year institutional debt facility of £50m with a deferred draw and a shelf facility of £100m.

The funding will support SBHG’s strategy of building 2,000 new homes in west London by 2028. 

“Through our strong local partnerships, we have ambitious targets for building the affordable homes our area needs,” said Matt Campion, CEO at SBHG.

“This is in addition to investing in our existing homes and improving additional services which support our west London community.”

Sanjay Narbheram, director of housing finance at MUFG, said it was delighted to be supporting SBHG.

“The strength of SBHG’s credit allowed us to run a competitive institutional funding process, which resulted in sourcing and successfully working with MIDIS.”

Gareth Edwards, associate director at MIDIS, added: “Increasingly local housing associations are looking for alternative strategies to help meet longer-term funding requirements to support further investment, which is where institutional investors come in. 

“The social housing sector is highly attractive to many investors because it offers long-term, secure, regulated and stable cash flows, and delivers a strong social impact.”

Mohit Jain, finance and development director at SBHG, concluded: “We received interest from a wide range of lenders to the sector and selected these lenders because their terms offered value for money for SBHG and matched our corporate strategy objectives." 

Pictured above: CGI of North End Road, Fulham, where 30 affordable homes will be built by SBHG for a local disability charity



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