Alliance Homes, is pleased to announce that it has secured £100 million of funding through a highly sought after private placement.
Alliance has completed more than 230 new homes in the last year, and the new funding will support its strategic goal to build 2,000 homes over 10-years, as well as investing in the sustainability of its existing homes.
The funding was secured through a loan known as a private placement. The private placement with Alliance Homes was heavily oversubscribed, highlighting how robust Alliance’s finances are as demonstrated by the A1 rating from Moody's
Phoenix Group was chosen as lead investor (with funding provided through Macquarie Asset Management), together with Quebec based, iA Financial Group, another new lender to the group.
The loan notes will be drawn in tranches, in accordance with business needs this gives Alliance long-term certainty of funding as it pursues its investment ambitions.
Alliance was supported by Chatham Financial and Devonshires as it developed its funding strategy and delivered it.
Katrina Michael, CFO at Alliance said “The challenges of addressing the current affordable housing shortage while investing in existing homes and communities and becoming more sustainable are top of the agenda for Alliance Homes. This funding will allow us to meet our corporate goals and we’re looking forward to continuing our relationship with Macquarie and with our new investors to achieve our ambitions.”
Henrietta Podd, who led the team at Chatham, said: “The private placement enables Alliance to both invest its existing stock and build new homes, delivering a positive social impact to its community and improving the sustainability of its assets. We at Chatham were delighted to get the opportunity to support them through this process”.