21 June 2013
Curo has this week completed a deal for up to £75M funding with M&G Investments to roll out a programme of development over the next three years.
The deal comprises £50M to continue the growth of Curo’s existing building programme and its move into the private sale market, including the development at the ex-Ministry of Defence (MOD) site in Foxhill in Bath, with an option for a further £25M for additional projects.
Victor da Cunha, Chief Executive of Curo, says “We’re delighted to have the full financial capacity to meet our new-build homes plan. Our ambition is to create a rolling programme of 500 new-build homes each year, around 50% of which will be affordable. House-building supports substantial economic growth, and this funding will also provide local employment opportunities and contribute to the West of England Local Enterprise Partnership (LEP) target of creating 95,000 new jobs in the region over the next 20 years.
“Expanding the types of homes we build, including market rents and private sale, will not only provide much-needed new homes but will help cross-subsidise our core purpose of providing homes that local people can afford”.
Dominic Lynch, Executive Director Finance & Resource at Curo, says “We tested the market and found M&G to be a great partner. They put the deal in place very quickly, and we look forward to a productive working relationship”.
Mark Davie, Head of Social Housing at M&G Investments, says “This is an attractively priced and very flexible package of debt for both parties and M&G is happy to provide an option for a further £25m for additional projects. We’ve now invested well over £3 billion in UK social housing and plan to continue to do so.”
The agreement comprises the following:
- £40M at a fixed interest rate for 30 years;
- £10M at an interest rate linked to the retail prices index for 25 years;
- an optional additional £25M available for a period of up to four years.
Phil Jenkins led the team at Centrus which provided advice to Curo on the deal.