Savills: Financial Consultants backs Clanmil to raise £100m to deliver new homes

This is the first private placement deal for Clanmil, a housing association providing over 5,600 high quality social and affordable homes across Northern Ireland for families and older people.

The investment, by Aviva Investors, iA Financial Group and Pension Insurance Corporation Plc, will support the implementation of Clanmil’s five-year strategy. By 2026, Clanmil plans to have provided an additional 1,400 much-needed high-quality homes, as well as investing in the maintenance and upgrades of existing homes to ensure they are energy efficient and remain places where life is good.

The package will allow Clanmil to access housing development grants from the Department of Communities, combining public and private funding to create a total investment in new homes of around £200 million. This is expected to generate up to 950 construction jobs and support over 1,450 associated jobs in the supply chain and wider economy over the next four years.

Today’s announcement comes after Clanmil presented its ambitious strategic plans to a range of investors in June.

Carol McTaggart, Group Managing Director at Clanmil, said:

“We are delighted to have secured this funding. An investment of this magnitude by three investors is a major vote of confidence in Clanmil and our ability to deliver on our strategic ambitions. need, helping to reduce the growing waiting list for housing and strengthening communities by creating better places to live.

“This investment will bring a range of positive outcomes, including jobs and homes, and represents good business not only for Clanmil, but also for the public treasury, allowing much more to go into available public money. for new homes. It also demonstrates that in addition to our social contribution, the social housing sector in Northern Ireland plays an important role in strengthening and growing our economy.”

Barclays helped arrange the private placement. Joanna McArdle, Director at Barclays Corporate Banking, said:

“Clanmil have been a long-time client of Barclays and we were delighted to support them in their first private placement. This is a historic transaction, not only for Clanmil but also for NI plc, and it is encouraging to see another Northern Ireland borrower accessing the international bond markets.

“Clanmil’s financial strength, along with its experienced management team and board, has enabled us to raise £100m from a range of blue-chip UK and international investors.”

Greg Bell, Executive Director of Finance at Clanmil, added:

“We have been really encouraged by the level of investor interest and our offer has been significantly oversubscribed. This long-term investment offers added security, and we are particularly pleased to have it secured at a rate established ahead of the current economic situation. We are very grateful for the assistance provided by Barclays, Savills Financial Consultants and the Devonshires legal team.”

Savills Financial Consultants acted as financial advisor to Clanmil in entering into the investment agreement. Mike Roche, Principal at Savills Financial Consultants, said:

“We are proud to have been involved in an important milestone for Clanmil and would like to congratulate the team for achieving such a strong result for their first private placement. This was achieved despite the transaction being priced during a time of significant funding volatility.We look forward to seeing Clanmil use this platform to continue to address housing challenges in Northern Ireland by providing good quality housing in safe supportive communities.

Today’s announcement comes after Clanmil, in late 2021, successfully completed the refinancing on more favorable terms of £150m of existing loan facilities which were set to expire.

Clanmil are continually looking for development opportunities that will help increase the supply of social housing in areas of housing need throughout Northern Ireland and would like to hear from landowners and developers who have sites with a development potential.