One Housing secures £150 million in long-term funding

    One Housing has secured £150 million to continue to sustainably expand their housing, care and support portfolio across London and the South East.

    The new finance was raised through approaching North American investors, alongside those in the UK, resulting in a diversified final investor group which includes one US investor who is new to the social housing market.

    One Housing has secured £150 million to continue to sustainably expand their housing, care and support portfolio across London and the South East.

    The new finance was raised through approaching North American investors, alongside those in the UK, resulting in a diversified final investor group which includes one US investor who is new to the social housing market.

    The deal is a mix of secured and unsecured finance ranging from 10 to 20 years in duration at a blended interest rate of just under 2.84%. Over 50% of the finance (£80m) was raised on an unsecured basis. For the secured funds, One Housing used a Numerical Apportionment Basis (‘NAB’) security structure, which is the first time it’s been applied in a private placement market transaction.

    The finance will be put towards the delivery of One Housing’s Corporate plan ambitions to develop 5,000 new homes over the next ten years, alongside expanding their care and supported housing offer. 

    Ebele Akojie, One Housing’s Chief Financial Officer, said:

    “We have successfully raised £150m from the private placement markets at a blended interest rate of just under 2.84%. We were able to attract interest from investors achieving a significantly oversubscribed orderbook. This demonstrates investors’ confidence in the diversity of One Housing’s service offering and our commitment to sustainable growth.”

    Mark Wells, Head of Structured Debt Capital Markets for MUFG in EMEA, added: “US investors again provided a competitive alternative to the UK market with significant funding flexibility, meaning One Housing achieved a very strong outcome despite challenging market conditions. We at MUFG were pleased to bring a new investor to the sector, and it is especially encouraging to see not only the increased demand for UK social housing in the US but also the ability of investors to meet borrowers bespoke funding requirements.”

    George Flynn, Vice President at NatWest Markets said “As a bank we are delighted to have supported One Housing on this private placement transaction, delivering the first NAB security structure in the private placement market, a new institutional investor and a healthy balance of secured and unsecured financing. This transaction provides a flexible and attractively priced offering and is testament to the value of running a syndicated and competitive process as well as conducting a US roadshow.”

    Jonathan Clarke, Managing Director at Centrus who were the independent adviser on the transaction, said: “This transaction represents attractive and flexible financing to support OHG’s ongoing development programme. This transaction has been carefully planned, reflecting OHG’s sophisticated approach to aligning their financing with their business & strategic plan needs.”

    MUFG Securities and NatWest Markets acted as Joint Agents on this Private Placement transaction and our treasury advisors were Centrus Financial.