11 May 2020
Hundreds of much needed homes will be built in South Wales after Caerphilly-based housing association United Welsh agreed a £50 million loan with Scottish Widows.
The agreement with Scottish Widows will see United Welsh borrow £50m at a highly competitive fixed rate of less than 2.5% for 30 years.
The loan will enable United Welsh to build 700 new properties, contributing to the Government’s target to build 20,000 new affordable homes. Once completed, the developments will bring United Welsh’s total housing stock to more than 7,000 properties across South Wales.
Lynda Sagona, United Welsh Chief Executive, said, “At this time of great uncertainty where home has become more important than ever, we are delighted we have been able to negotiate this loan on very competitive terms with Scottish Widows.
“It will enable us to continue with our ambitious development programme providing much needed homes for our local communities.”
Grahame Sturges, Chairman of United Welsh added, “Having a safe home is of paramount importance to everyone and securing this funding will help us to provide that for many more people.
“It will also mean we can continue to make a valuable contribution to the local economy of South Wales as we develop these homes, which is now more critically important than ever.”
Gavin Reid, Associate Director at Scottish Widows, said: “We are delighted to have structured a long-term funding solution to support United Welsh’s new build affordable homes strategy, whilst securing high quality cashflows aligned with our annuity liabilities.
“Being able to complete this transaction during such unprecedented times helps demonstrate our wider commitment to the social housing sector, in which we have now invested more than £3bn.”
Treasury advice was provided by Centrus and legal services were provided by Clarke Wilmott.
If you require any further information, please contact:
Anna Meredith, United Welsh
Tel: 029 2085 8185 Email firstname.lastname@example.org
Notes to Editors
United Welsh is a not-for-profit organisation providing housing and related services to people in South Wales.
The United Welsh Group also incorporates an award winning subsidiary Celtic Horizons which looks after all its property services and has been named the fifth best landlord in the UK. United Welsh currently manages more than 6,000 properties across 11 local authorities and in the last five years has built more than 1,000 homes and intends to build at least 1,300 more in the next five.
Website – www.unitedwelsh.com
Facebook – /United Welsh
Scottish Widows provides long-term loans across a range of sectors including Real Estate, Housing, Infrastructure and Higher Education. It offers a flexible approach to support its clients to fulfil their long-term ambitions from the provision of affordable housing to the delivery of renewable energy projects. As part of Lloyds Banking Group, we work alongside our Commercial Banking colleagues who provide complementary products.
Website – www.scottishwidows.co.uk/loaninvestments