Macquarie lends $191m to UK's social housing provider

Macquarie Asset Management has financed one of UK's largest social housing providers, Places for People, with a £100 million ($191m) debt facility.

Places for People is a not-for-profit housing association, owning and managing around 262,000 homes across England and Scotland.

The transaction comprises of an eight-year unsecured private placement bond, issued under Places for People's Euro Medium-Term Note programme.

Proceeds from the issuance of the notes will be applied towards refinancing, helping the group's balance sheet flexibility and extending its debt maturity profile.

Macquarie Asset Management head of secure income in EMEA Gareth Edwards said: "In a volatile market environment, we were pleased to work closely with the team to deliver an expeditious refinancing solution, providing certainty and flexibility within their wider funding programme."

"This supports Places for People's ability to continue investing in existing homes and to deliver more high-quality, affordable housing over time, and we look forward to building on our relationship in the future."

While 78,000 are regulated social and affordable homes run by Places for People, around 185,000 are non-social housing assets, such as market rent homes, leased properties, managed services and purpose-built student accommodation.

"We'd like to thank the wider Macquarie Asset Management team for their support throughout this process. In a challenging market, working with a new investor is crucial, allowing us to form partnerships that sustain our continued investment in communities," Places for People head of treasury Baljit Singh said.

"The funding further strengthens the resilience of our financing programme and reinforces our commitment to investing in our existing homes, enhancing services for our customers, and delivering much needed, high quality affordable housing across our communities."

Edwards noted Places for People's deep expertise in social housing, strong reputation in the sector, and close links with the communities it serves.

Singh said he looks forward to building a relationship with Macquarie to achieve its long-term mission of supporting housing in the UK.