The Pension Insurance Corporation (PIC) has completed a second debt investment in County Durham-based housing association Livin Housing, worth £30m.
The transaction takes its total investment in the 8,400-home provider to £95m, following an earlier £65m private placement in April 2019.
The new funds are secured on a portfolio of social housing portfolios in the North East.
Livin, which formed in 2009 from a large-scale voluntary transfer from Sedgefield Borough Council, will put the cash towards its development programme as well as its capital programme of investment in existing housing. It aims to develop 450 homes in the North East over the next three years.
The new £30m of debt is split into three tranches with drawdowns in 2021, 2022 and 2023. Maturities are split between 2054 and 2059, which PIC said was designed to match its pension liabilities “in years where it is difficult to source cash flows in the public bond markets”.
The interest rate was not disclosed.
To date, PIC has invested in excess of £2bn in UK social housing, and the latest deal is its fourth with a UK housing association within the past year, following another recent deal also in the North East.
In December, it agreed an £80m private placement with North Star Housing Group, based in Stockton-on-Tees, including £10m of deferred funding, contributing to a refinancing exercise by the association.
Another deal saw it invest a further £65m in Newport-headquartered association Pobl in November, adding to an initial £35m deal in 2013.
It agreed a £75m private placement with Trident Housing Association in June last year.
Commenting on Livin’s new funding, Sean Brodie, the landlord’s executive director of finance and development, said: “We are delighted to have secured this additional long-term funding. The deferred element is particularly helpful as it provides us with certainty of future funding, at a known cost.
“PIC’s team were flexible in providing a funding structure that meets our needs and proactive in helping us complete the transaction during volatile markets and I’d like to thank them for their efforts.”
Eugenia Korobova, debt origination manager at PIC, said: “We are very happy to have again invested in Livin, a respected social housing provider. Sourcing secure, long-dated cash flows such as these is important to PIC as we focus on our purpose of paying long-term pension liabilities.”