£85m boost for housing association

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Kingdom Housing Association has landed a major £85 million funding package to help secure its development programme of more than 1,100 homes.

The funding deal is being provided by institutional investors jointly for a period of 30 years with repayment in 2048 and 2049.

The borrowing – secured against Kingdom’s housing assets – is to be used for the development programme and to repay £10m of existing short-term debt, placing it on a “competitive” long-term rate.

Kingdom’s development programme will be supported by the funding from the private placement enabling the roll-out of 1,165 affordable homes which have been committed to with grant money from local authority partners, primarily Fife Council, and the Scottish Government. 

Nick Pollard, director of corporate support services who is responsible for finances at Kingdom, said: “This is a significant milestone in the history of Kingdom.

“The investor appetite we have seen for the proposals that Kingdom took to market is a massive vote of confidence in Kingdom’s financial strength, its future financial and growth plans, the governance and management of the organisation and its staff.

“The most important point however is the confidence institutional investors have in the plans for delivery of new affordable homes.”