One housing to build 1,450 homes following £85 million financing deal with M&G investments

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 06 February 2017

 London

One Housing, a leading developer and provider of homes, care and support in London and the South East, has borrowed £85 million in a long term financing deal with M&G Investments (“M&G”), an international investment manager.

The 35-year loan will enable the housing association to increase liquidity and develop 1,050 homes for social and affordable rent, shared ownership schemes as well as an additional
400 properties for market sale by 2020 to generate profits to invest in further affordable homes. This forms part of a wider ambition to develop 4,000 homes across all tenures over the next five years.

This deal is innovative for the housing sector, because a high proportion of the collateral comprised shared ownership properties.

Paul Rickard, Group Director for Finance, One Housing, says: “This innovative loan, using the growing value of our shared ownership portfolio, will help us to build thousands more high-quality homes to meet the critical demand in London and the South East.”

Mark Davie, Head of Social Housing, M&G, says: “One Housing already provides much needed homes in an area of the country where affordable housing is in short supply. This is our second transaction with One Housing and will enable further developments over the next few years.

“This approach brings benefits to our pension fund clients who seek to receive sustainable long-term returns, secured against residential property. M&G has now invested over £6 billion in UK social housing through property transactions, public bonds and private placements and we’re keen to do more.”

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.

  • This innovative loan, using the growing value of our shared ownership portfolio, will help us to build thousands more high-quality homes to meet the critical demand in London and the South East.

    Mark Davie,  Head of Social Housing, M&G

If you require any further information, please contact

Irene Chambers
Corporate Communications
M&G Press Office
  +44 (0)20 7004 4132
  irene.chambers@mandg.co.uk

Irene Chambers
Corporate Communications
M&G Press Office
  +44 (0)20 7004 4132
  irene.chambers@mandg.co.uk



Notes to Editors

About One Housing
One Housing helps people to ‘live better’ by providing high quality homes and care across London and the south east. It manages over 15,000 homes and has plans to build thousands more. The company also cares for over 11,500 people to help them live independently and operates the UK’s largest homeless hostel, Arlington.

To raise money for urgently needed affordable homes One Housing builds new homes to rent or sell on the open market or borrows against its £5bn property assets, which are largely in central London. In the last three years it has delivered more than 1,500 new affordable homes to help meet the housing shortage in some of the world’s most desirable areas.

About M&G
M&G is an international active asset manager, investing on behalf of individuals and institutions for over 80 years. At 31 September 2016 the firm manages over £266 billion of assets through a wide range of investment strategies across equities, fixed income, real estate and multi asset.

Headquartered in London, M&G employs over 1,900 people worldwide operating from offices across Europe and Asia. M&G is the investment arm of Prudential Plc in the UK and Europe.

M&G Investments is a business name of M&G Investment Management Limited and is used by other companies within the Prudential Group. M&G Investment Management Limited is registered in England and Wales under number 936683 with its registered office at Laurence Pountney Hill, London EC4R 0HH. M&G Investment Management Limited is authorised and regulated by the Financial Conduct Authority.

This press release reflects the authors’ present opinions reflecting current market conditions which are subject to change without notice and involve a number of assumptions which may not prove valid. It has been written for informational purposes only and should not be considered as investment advice or as a recommendation of any particular security, strategy or investment product. Information given in this document has been obtained from, or based upon, sources believed by us to be reliable and accurate although M&G does not accept liability for the accuracy of the contents. M&G does not offer investment advice or make recommendations regarding investments. Opinions are subject to change without notice.

M&G Investments is a business name of M&G Investment Management Limited and is used by other companies within the Prudential Group. M&G Investment Management Limited is registered in England and Wales under number 936683 with its registered office at Laurence Pountney Hill, London EC4R 0HH. M&G Investment Management Limited is authorised and regulated by the Financial Conduct Authority.