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Bromford has signed an £100m deal with Legal & General to help toward their goal of building 12,000 affordable homes by 2028.
The association recently announced successful delivery of over 1,000 new homes in the year ended 31 March 2020 and a re-opening of development sites following the recent lockdown.
Steve Bolton, Head of Private Corporate Debt, Europe, said: "Our investment in Bromford matches our extended liabilities and delivers both real economic growth and social value for the UK. We’ve seen lots of change in the past few months but the fundamental need for good quality homes remains a constant.
"There is an urgent need to provide stable homes for millions of households on waiting lists, and partnerships like this will help deliver on that need.”
Imran Mubeen, Head of Treasury, Bromford, said: “We have taken a proactive approach right across the business to managing the challenges and opportunities arising from Covid-19.
"We have now resumed development and look forward to delivering more homes and services at a time our communities and families rely upon us more than ever.
“We already benefitted from exceptionally high levels of liquidity and whilst there was no immediate requirement for new funding at this stage, this deferred deal reflects our pro-active approach to the market: locking in long dated funding at historically low rates to future-proof our new homes plan whilst matching future interest costs with our required liquidity profile.
"It is important that we work with funders and investors who understand our long term strategic plan, and we are delighted to extend our partnership with LGIM who continue to support our journey and appreciate the way we work. This deal with LGIM provides near term funding certainty as we continue in our aspiration to deliver a further 12,000 homes by 2028.”
George Flynn, Vice President at NatWest Markets, said: “We are delighted to once again partner with Bromford on this successful £100m long dated, delay draw transaction.
"Through working closely with L&G and Bromford we were able to structure a flexible and competitively priced transaction to support Bromford’s long term strategic plan and growth agenda in order to deliver much needed affordable housing.
"This also demonstrates the continued support of long term investors for the social housing sector.”