Apex secures £30m investment to develop new homes
Apex Housing Association (Apex) has secured a £30m debt investment from a specialist insurer to go towards building new homes.
The investment from Pension Insurance Corporation (PIC) follows a £100m investment in 2021 and will go towards the ongoing development of 300 to 400 new homes per year, as well as to refinance existing debt. The funding will also support Apex to provide tenants with well-maintained energy efficient homes.
Roderick Canning, Apex’s Director of Finance, commented:
We are delighted to have secured this transaction with PIC to continue our development programme over the coming years. PIC is a valued partner following our initial transaction in 2021 and having the opportunity to work again with a team that has such a strong understanding of the social housing sector makes for an efficient and successful process.
Celia Franch Lopez, Debt Origination Manager at PIC, said:
We are very pleased to have worked with Apex Housing Association on this transaction, supporting the social value they are also contributing to the Northen Ireland economy. The investment provides an attractive risk profile in an area of high demand for social housing. In addition, the maturity profile is well-suited to our liabilities. This investment complements our portfolio providing low risk, long-term, secure cashflows that match our pension liabilities for decades into the future.
Gourav Choudhary, Director, Capital Markets at TradeRisks, who acted as sole arranger and dealer for the transaction, said:
We are pleased to have supported Apex Housing Association on this private placement. The Note Purchase Agreement (NPA) framework that TradeRisks established in 2021, has enabled Apex to efficiently source further capital for development of affordable homes.
