Glasgow housebuilder Swan Group lands £50m to create 3,000 affordable Scots homes

Glasgow housing developer Swan Group has scooped £50 million to deliver more than 3,000 homes across Scotland.

From left: Jamie Davidson, MD at Conduit Finance, and Phil McGinlay, MD of Swan Group. Picture: Peter Devlin

The affordable housing ­specialist has secured a five-year growth capital deal with the aid of Edinburgh and ­London-based financial ­consultant Conduit Finance.

The investment, provided by an undisclosed institutional funder, will help Swan to accelerate the development of more than 3,000 affordable homes with an estimated gross development value in excess of £420m.

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Swan’s model focuses on the development and management of affordable property and involves working with housing associations and local authorities in an effort to reduce affordable housing shortfall and council waiting lists. The Scottish Government has committed to delivering 50,000 affordable homes, including 35,000 homes for social rent, between 2016 and 2021.

Swan managing director Phil McGinlay said: “While over 1.3 million UK families languish on waiting lists for affordable housing, the trend for the construction of high-quality, affordable housing continues to decline.

“Securing this new growth capital facility will allow us to support our partners in housing these families much faster.

“The funding will also help us deliver our strategic growth objectives more quickly. We look forward to partnering with Conduit Finance in the future.”

'A positive impact'

Conduit Finance supported Swan in its transition to a “more streamlined ­capital structure”, in addition to sourcing its investment ­partner and managing the transaction.

Jamie Davidson, managing director at Conduit Finance, added: “Following the introduction from Geoff Stansfield at DWF solicitors, Conduit helped identify the most ­efficient capital model, and provider, for delivering the Swan Group growth plan.

“We’re proud to be able to assist a business which is ­having a positive impact on society. We look forward to supporting Swan Group ­during this next period of growth.”

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Swan’s current projects include developing a 105-unit property at Law Place in East Kilbride to create a combination of mixed terrace housing and flats.

Earlier this year the business completed the purchase of the former Wise Group site on Edinburgh Road in Glasgow.

It has since submitted a planning application proposing the creation of around 150 affordable homes at the nine- acre site.