Shepherds Bush Housing Association has secured a £110m private placement to support its ambitious affordable home building programme.
SBHA is a London social landlord with 5,091 homes across a mix of tenures. Formed in 1968, it provides affordable housing in some of London’s most expensive boroughs including Kensington & Chelsea, Ealing Hammersmith & Fulham, Hillingdon and Hounslow.
SBHA’s CEO Matt Campion said: “The housing crisis is being felt throughout the country but nowhere more than in London. London’s economy relies on many being in low income jobs, but this is incompatible with high housing costs. For the past 50 years we have been providing affordable homes for people who need them. This funding agreement will allow us to build for future generations.”
SBHA’s new Chief Finance Officer Paul Weston said: “The rate secured of 2.19%, supported by a private rating, reflects SBHA being a stable business operating in an area of high asset values and strong underlying demand with a strong balance sheet.”
SBHA’s home building will create 1,181 homes by 2030 of which 1,033 will for affordable rent or shared ownership. This is in addition to the 384 homes SBHA is currently building. This includes:
- 146 homes (87 for London Affordable Rent; 59 for Intermediate Rent) at Chelsea Creek
- 30 homes (18 for affordable rent; 12 for shared ownership plus a new headquarters for a local disability charity) in Fulham
- 87 homes (22 for rent; 65 shared ownership) called Waterside Heights on Grand Union Canal in West Drayton.
Julian Barker, partner at national law firm Devonshires, said: “The team at Devonshires are delighted to have been able to support SBHA in securing this important private placement at a highly competitive rate. This transaction shows great faith in the strength of SBHA’s business and the demonstrates the continued attractiveness of the registered provider sector as a whole for investors.”
Adrian Bell, Head of Social Housing at Chatham Financial, said: “We are very pleased to have supported SBHA on this Private Placement – achieved at an all in cost of 2.19%, one of the lowest rates for a Private Placement in 2020 – and providing maturities perfectly designed to suit the needs of its repayment schedule. It is a great compliment to the strength of the business and the professionalism of the team managing the transaction.”
Stephen Valvona, Director of US Private Placements, at Lloyds Bank Corporate Markets, said: “Lloyds Bank is very pleased to have led this capital markets transaction for SBHA. The offering was well received by investors, allowing SBHA to increase the overall size of the deal and take advantage of a delay to funding, while still pricing at attractive all-in levels. This reflects the strong support from investors for the SBHA credit story as well as the wider Housing Association sector.”
Fiona Dickinson, Investment Director at ASI said: “ASI is delighted to be able to support SBHA on this long term funding which will help to secure the delivery of much-needed new affordable homes. Our clients are attracted to social housing issuers with good quality long term secured cashflows, further supporting their desire to grow investment delivering a positive ESG impact and changing peoples’ lives.”
Munawer Shafi, Head of Structured Finance and Private Debt at Aviva Investors, said: “We are pleased to support SBHA and its programme of affordable homebuilding across London. Whilst the social housing sector continues to provide our clients with good investment opportunities, it also serves an important role within local communities. We look forward to working with SBHA’s experienced management team as they continue to supply much-needed affordable homes to areas with strong underlying demand. We believe this will not only benefit our clients but will have a positive social impact across London’s boroughs.”