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11 February 2019
Queens Cross Housing Association has now secured £40 million funding from M&G Investments for ambitious plans to transform the Hamiltonhill area of Glasgow into a new urban ‘suburb’.
Queens Cross is to build 300 affordable homes for rent on the site just north of the city centre. This will be complemented with a further 300 new build homes for sale. The association is currently in discussion with a range of developers to progress the project.
‘This is just the latest piece of the jigsaw that will deliver a real transformational change to this part of the city,’ said Queens Cross, chief executive, Shona Stephen.
As part of the development this investment will deliver new park and green space along with community and commercial developments that will transform long-term vacant and derelict land.
‘Building a relationship with an asset management company for funding is a first for Queens Cross. This innovative approach to securing investment is a great demonstration of our commitment to explore all avenues to secure the funds we need to help improve the lives of our tenants, and to build Queens Cross as an area people can be proud to call home,’ said Shona.
Mark Davie, Head of Social Housing at M&G Investments, says:
“Queens Cross Housing Association is already providing much needed housing across Glasgow, supporting the local community. This is our third deal with a housing association in Scotland where good quality affordable homes continue to be in short supply.
“This transaction will deliver sustainable long-term returns to our pension fund clients, secured against residential property. M&G has now invested over £6 billion in UK social housing and we are always looking for more opportunities to invest, to help address the shortage of affordable homes across the country.”
The money will also allow the association to restructure existing debt, freeing up more money to explore other development opportunities in the area.
NatWest Markets acted as private placement agent on the financing for Queens Cross. George Flynn, Vice President at NatWest Markets, said “We are delighted to have supported the Queens Cross Housing Association team with its debut Private Placement transaction, providing a long-term and cost-effective way to help fund development programme.”
The Hamiltonhill development is on schedule to start on-site in the Spring with initial ground and drainage works.
Until 2007, housing associations generally relied on banks and The Housing Finance Corporation to meet their external funding requirements. In recent years non-bank lenders such as M&G have been providing an increasing amount of longer-term finance as banks withdraw from this market.
Glasgow City Council will also be a key partner and funder delivering the project as part of the Glasgow Canal Regeneration Partnership area.
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Notes to Editors
M&G Investments is part of M&G Prudential, a savings and investment business which was formed in August 2017 by our parent company, Prudential plc and has £351 billion of assets under management. M&G Prudential has over 7 million customers in the UK, Europe and Asia, including individual savers and investors, life insurance policy holders and pension scheme members.
M&G Prudential is set to demerge from Prudential Plc to become an independent company listed on the London Stock Exchange.
For nearly nine decades M&G Investments has been helping its customers to prosper by putting investments to work, which in turn creates jobs, homes and vital infrastructure in the real economy. Its investment solutions span equities, fixed income, multi asset, cash, private debt, infrastructure and real estate. M&G recognises the importance of responsible investing and is a signatory to the United Nations Principles for Responsible Investment (UNPRI) and is a member of the Climate Bonds Initiative Partners Programme.
Its £30 billion property arm, M&G Real Estate, is a leading financial solutions provider for global real estate investors, has a sector leading approach to responsible property management and is committed to continuously improving the sustainability performance of its funds.
For more information, please visit: http://www.prudential.co.uk/businesses/mandg-prudential
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