United Welsh Housing Association (“UW”) is a not-for-profit organisation providing housing and related services across nearly 5,000 properties, spanning 11 local authorities in the South Wales region.
Looking to fund the cashflow requirements of a 500-property development programme, and to support the receipt of a £13-million housing finance grant from the Welsh Government, UW participated in a M&G club deal, providing £156m of loans to 17 Welsh housing associations.
UW focus on supporting individuals and families in very diverse circumstances. This includes working with other support providers to supply homes for people with additional needs, such as those with learning disabilities, the homeless, young people leaving care, women suffering domestic abuse, those recovering from substance misuse and people with mental health problems.
An example of a development benefitting from the provision of the loan is ‘The Beeches’ scheme in Caerphilly. This development comprises of 25 homes for rent and 20 homes for sale, at low cost, and centres on the regeneration of the Caerphilly Miners District Hospital. It is a joint venture with the Caerphilly Miners Centre and residential construction and social housing experts, Lovell.
Gareth Hexter, Director of Finance and Corporate Services at UW, said, “Participating in the club deal gave us access to the long-term funding vital in fulfilling our ambitious plans in South Wales. There were a number of parties involved in the club deal, which could have created complication. However, Mark Davie was very clear, insightful and commercial, and kept the process on track from beginning to end.”
Mark Davie, Head of Social Housing at M&G, said, “United Welsh is a superb example of how club deals can help social housing providers gain access to long-term lending on excellent terms and tenor. M&G is very proud to be able to support this style of lending and intends to explore further opportunities across the UK.”