Irwell Valley Homes has agreed a £50m funding package with Danske Bank UK, to deliver a number of new housing projects over the next five years, it was announced today.
The new funding facility will be used to help with the delivery of 1,260 new affordable homes, for social and affordable rent, plus supported housing, which will add to the association’s existing portfolio. Around 260 of the new homes are already on site or have received planning approval, with a further 1,000 in the future pipeline of the development programme.
Irwell Valley Homes will also use the funding to improve and expand its existing homes and estates such as Sale West in Trafford, where work to build 79 new homes for social rent has begun, kickstarting a £50m regeneration programme which is planned for the estate over the next 5 years. Important fire safety works to a number of high-rise buildings will also be completed over the next three years.
Helen Nicholson, Executive Director of Finance and Governance at Irwell Valley Homes, said: “It has never been more important for people to have a safe, decent home and the demand for affordable housing continues to rise. We are delighted to have secured this funding to deliver our key strategic goal of building more homes to meet the growing needs of the communities we serve.
“Importantly, the terms agreed with Danske Bank will enable us to carry out fire remedial work on existing sites over the next few years. Danske Bank have been flexible and easy to work with and we have built a good relationship with them.”
Mark Canning, Head of the Corporate Relationship Team at Danske Bank, said: “We are delighted to have been able to provide this funding to Irwell Valley Homes and we look forward to seeing the association’s development programme taking shape over the next few years.
“Danske Bank UK is the biggest bank in Northern Ireland, where we have been the lead bank provider of finance to the social housing sector for many years. We are delighted to start 2021 with a significant transaction in England. As part of our strategic growth plans we will be more active in helping the sector across the rest of the UK moving forward.”
Centrus acted as financial advisor to Irwell Valley Homes. John Tattersall, Senior Director at Centrus said: “Irwell Valley Homes’ ambitious development and regeneration plans sit alongside an unwavering commitment to ensuring tenant safety. Both objectives warranted a flexible funding solution which Danske Bank provided on competitive terms, ensuring value for money for Irwell Valley Homes whilst re-affirming Danske’s commitment to the sector.
“Centrus is an independent financial services group that believes in finance with purpose. Specialising in corporate finance advice to the social housing sector, we believe that with imagination, energy, and a client first ethos we can unlock significant value for clients like Irwell Valley Homes and ensure they are enabled to deliver social impact for the betterment of their communities.”