Newent housing association seals £130m investment package
By Rob Freeman | 23rd September 2020
Two Rivers Housing has secured a £130million investment package to support the delivery of affordable homes and stock investment across Gloucestershire and Herefordshire.
The Newent housing association, which has more than 4,100 homes across the two counties, has secured its first private placement investment of £80million from a US-based institutional investor.
The deal was brokered by Santander who acted as the sole placement agent for the transaction and worked with Two Rivers to generate interest from investors.
Due to the coronavirus pandemic, the Two Rivers executive team pre-recorded its investment pitch which was presented remotely and followed up with a detailed question and answer session with US and UK-based investors.
Prior to the investment, Chatham Financial worked with Two Rivers to conduct a detailed analysis of the organisation's debt portfolio and a review of other service providers including security valuers.
As well as helping to secure the private placement investment, it enabled Two Rivers to refinance its existing debt and raise a £50million revolving credit agreement.
Two Rivers Housing corporate director of resources Carol Dover said: "We are delighted to confirm what is a substantial investment in our organisation.
"As a significant local place shaping housing association, the funding will help us deliver on our promise to build 1,000 new affordable homes in Gloucestershire and the surrounding area by 2028."
She continued: "It will also support regeneration projects and investment in our existing properties, as well as the services and support we are able to provide our tenants.
"We'd like to thank both Chatham Financial, Santander and our legal advisors Trowers and Hamlins for their help and support throughout this process."
The investment provides Two Rivers with certainty of funding for its future development programme and demonstrates the strong demand for investors to support the important role housing associations play locally.
Chatham Financial director Adrian Bell said: "It has been a pleasure to work on this financing.
"Two Rivers has been able to restructure their existing debt portfolio to ensure it meets the requirements of their future investment programme while retaining the relationship with their existing lender and obtaining a very attractive all in cost of debt."
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