This is PIC’s fifth transaction involving £160m of lending with the MHS homes group as part of a long-standing partnership.

This latest transaction is split across two tranches, £20m at commencement and £10m deferred by 24 months, both carrying a 20-year maturity.

It enables Heart of Medway to access flexible funding against the backdrop of a challenging macroeconomic environment across the UK’s social housing sector, assisted by PIC's ability to provide deferred drawdown. 

PIC was the sole investor on the transaction, while Centrus acted as sole arranger.

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Bruce Shelmerdine, group finance director at MHS Homes Group, said: “Over the past 10 years, Heart of Medway has grown from a fledgling housing association that built its first home in 2011, to a well-respected provider with a strong delivery record. 

“There’s a huge demand for affordable housing in Kent and this new private placement, a result of our long-term relationship with PIC, will help us continue to meet the needs of our local communities.

“We’re pleased to have worked again with PIC and Centrus to secure this funding which will allow us to build more affordable homes for people who desperately need them.”