Bromford secures €115m in funding for affordable housing

UK housebuilder Bromford has secured £100 mln (€115 mln) in investment from eleven investors from the UK and US to fund its housebuilding and sustainability programme.

The investment was oversubscribed seven times, showing there is strong demand for investment in housing associations with robust business plans and a commitment to sustainability.

Bromford has a strong track record of delivering new homes, having built over 3,400 new energy-efficient homes in the past three years. The company has also retrofitted over 1,300 homes to EPC C or above, and has migrated its repairs fleet to over 100 low carbon vehicles.

The new investment will help the social landlord to achieve its goal of completing 12,000 new homes over the next eight years, decarbonise more of its existing homes and improve diversity across the organisation.

Bromford's director of treasury, Imran Mubeen, said: ‘These funds will enable us to continue to invest in the delivery of much-needed new affordable housing across the West Midlands and West of England. This deal affirms that the capital markets absolutely remain open for housing associations who have a robust business plan and a compelling sustainability narrative.’

Lloyds Bank acted as sole placement agent on the deal, with Newbridge Advisors providing treasury advice and Trowers & Hamlins legal advice to Bromford, while Addleshaw Goddard acted as counsel for investors.

The investment follows a £75 mln (€86 mln) sustainability-linked revolving credit facility that Bromford secured with ABN AMRO in June and a £50 mln (€58 mln) sector-first innovative funding partnership with LGIM in August.

The housing association recently received planning permission for its biggest development to date, of 180 new homes on the outskirts of Gloucester.


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