Thirteen has successfully issued a private placement to a group of high-profile UK and US institutional investors, securing a GBP100 million injection of new capital.
As the largest housing association in the North East with over 34,000 homes, Thirteen secured the funding after its leadership team impressed investors at a series of roadshows.
The GBP100 million private placement is spread over a number of tranches with 25-year to 35-year maturities and a weighted average cost of funds of 2.86 per cent.
The new funding will support the delivery of Thirteen’s development programme during the next five years, further strengthening an already healthy financial position.
Heather Ashton, Thirteen’s executive director of resources, says: “This is fantastic news for Thirteen as it means we’ve secured long term funding at a very low, fixed cost that will help us to realise our growth and development ambitions.
“We’re really pleased with the feedback we received from investors throughout the process. It was extremely positive, and their confidence in Thirteen’s management team and governance has resulted in a fantastic outcome for our first private placement.”
Ian Wardle, Thirteen’s chief executive, adds: “Over the next five years, we’ve pledged to invest more than GBP1billion into improving homes for existing customers, building new homes, making improvements to neighbourhoods and delivering support services offered to customers.
“By broadening our funding base in this way, we can continue to invest in existing customers as well as building the new homes that future customers want and need.
“Earlier this year, we were also delighted to be named as a Wave Partner by Homes England, only one of two partners based in the North East, to help us further extend our pipeline of affordable homes across its operating area.”
Sohail Singal, associate director at JCRA – part of Chatham Financial, says: “We’re delighted to have arranged the debut private placement for Thirteen, the largest Housing Association in the North East. The funding will provide Thirteen with the ability to meet its development goals of building homes in an area that very much needs them. The deal represents a positive result in a difficult market and highlights investor appetite to work with strong, well governed housing associations in the North East of England.”
