Housing trust secures finance plan

HALTON Housing Trust has secured £40m of investment from the Pension Insurance Corporation PLC (PIC) via a debt-purchase deal.

A PIC spokeswoman said the funds will become available at an agreed future date to match Halton’s needs and to cut interest payments.

The funds will be used to finance affordable housing plans and to repay maturing debt, with the cash secured against property.

PIC said it has invested £1bn in social and affordable housing across the UK.

The spokeswoman said Halton Housing was advised by Link Asset Services, and Lloyds Bank acted as sole agent.

Neil McGrath, Halton Housing business service executive director, said: “We are very pleased to have entered into this funding agreement with PIC, which will allow us to build additional social housing in an area where demand is high.

“The deferred characteristic allows us to lock in certainty of funds at attractive interest rates well ahead of when the funds need to be utilised, resulting in cost of carry savings. As a result, Halton can continue to support the local population of Runcorn and Widnes with our highquality, affordable housing.”

Marno Jooste, Pension Insurance Corporation debt origination manager, said: “We are delighted to have come to an agreement with Halton Housing on this competitive transaction.

“The maturity profile and deferred drawdown structure is well suited to our liabilities and represents an attractive investment.

“The team at Halton were impressive in their proactive and organised approach and it was a pleasure to work with them on this deal, which further bolsters PIC’s investment and support for social housing projects up and down the country.”