£95m funds plan for 1,600 homes across South Wales

A HOUSING association has announced plans to build 1,600 new homes in South Wales.

The announcement comes from housing and care provider Linc-Cymru.

As part of a £95m funding package it said it will be building the homes “across South Wales” over the next 10 years.

There has been no more detail on where and what type of homes they will be.

Scott Sanders, chief executive of LincCymru Housing Association, said: “This significant funding boost will help us to provide more homes for those that need them most.

“Affordable housing plays an important role in providing a safe and secure environment for people to live, as well as helping people to improve their health and wellbeing.”

According to Linc-Cymru the funding was secured through independent financial risk advisor JCRA and includes £95m of new funding alongside a full restructure of its bank debt portfolio.

The total funding package includes £75m from two institutional investors and is described as one of the largest placements by a Welsh housing association.

Alex Morgan, associate director at JCRA, said: “We have worked closely with Linc to develop a funding strategy that not only creates value but also unlocks funding capacity and ultimately supports the delivery of more affordable homes for south Wales.

“We are delighted to be involved with Linc and achieve £75m of new long-term funding via a private placement, at low cost, moving the debt portfolio to fit for purpose and standardised covenant suite, as well as introducing the new short-term, flexible funding through Handelsbanken.

“The private placement attracted strong demand, ultimately leading to the introduction of a new investor to the Welsh social housing sector.”