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Harper Macleod advises leading housing association on £70 million funding deal to provide for 700 new homes

Law firm Harper Macleod has advised one of Scotland's leading housing associations on a £70 million funding deal which will allow it to deliver 700 new homes.

Clyde Valley Housing Association (CVHA) has concluded the private placement deal with Canada Life to support the delivery of the homes across Lanarkshire for social rent, which will see the association assisting the Scottish Government's aim of delivering 50,000 new homes in the life of this Parliament.

CVHA has an outstanding track record in working with its partner local authorities and developers, delivering sustainable high quality new homes that meet local housing need. Since setting up in 1996, the Association has grown steadily through new build supply at a rate of around 200 homes per year.

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Utilising this investment from Canada Life, CVHA will own nearly 5,000 homes by 2023. The 32-year private placement will enable finance to be drawn down in two stages with £35m available in June 2018 and £35m being drawn in Oct 2020.

The Association’s director of finance, Shirley MacDonald, said: “The Association has restructured its loan portfolio as part of our strategy to achieve a mixture of short and long-term funding to meet our development aspirations. I have been delighted to work with Canada Life, who have provided funding for more than 20 years to housing associations, and have a strong understanding of the sector allowing them to provide funding at very attractive rates.”

Derek Hogg, Partner and Head of the Housing team at Harper Macleod, said: "With our team having established a market-leading track record in helping Scottish housing providers to access funding on the capital markets in the last few years, we were very pleased to help CVHA successfully complete this private placement transaction, which leaves the Association well placed to continue to grow and deliver much needed new housing."

The association was also supported in securing this deal by Lloyds Capital Markets and CVHA’s loan portfolio will continue to be supported by its existing syndicate lenders, Lloyds Banking Group and Barclays Bank, who have been working in partnership with the association for over 15 years.