Clanmil raises £100m to build new homes

Clanmil Housing has today announced a new £100m investment from three UK and North American investors.

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

The investment, by Aviva Investors, iA Financial Group and Pension Insurance Corporation Plc, will support the delivery of Clanmil’s five-year strategy. By 2026, Clanmil plans to have provided a further 1,400 much needed, high-quality homes, as well as investing in maintaining and upgrading existing homes to ensure they are energy-efficient and remain good places to live.

The package will enable Clanmil to access housing development grants from the Department for Communities, combining public and private funding to create a total investment in new homes of some £200m. This is expected to generate up to 950 construction jobs and support more than 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 Chief Executive at Clanmil, said: “We are delighted to have secured this funding. Investment of this scale by three investors is a major vote of confidence in Clanmil and our ability to deliver our strategic ambitions. This money will allow us to deliver more great homes for people who need them, helping address the growing housing waiting list and strengthening communities by creating great 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 purse, making the public money available for new homes go much further. It also demonstrates that in addition to our social contribution, the social housing sector in Northern Ireland is playing an important role in bolstering and growing our economy.”

Barclays acted as placement agent on the transaction.

Joanna McArdle, Director at Barclays Corporate Banking, said: “Clanmil is a long-standing client of Barclays and we were pleased to support them on their debut private placement. This is a landmark transaction, not only for Clanmil but for NI plc, and it’s encouraging to see another Northern Ireland borrower access the international bond markets. “The financial strength of Clanmil, as well as its experienced senior management team and board, 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 were really encouraged by the level of interest from investors and our offer was significantly oversubscribed. This long-term investment provides increased certainty, and we are particularly pleased to have secured it at a rate established in advance of the current economic situation. We are very grateful for the assistance provided by Barclays, Savills Financial Consultants and the legal team at Devonshires.”

Mike Roche, Director at Savills Financial Consultants, said: “We are proud to have been involved in a significant milestone for Clanmil and would like to congratulate the team on securing such a strong outcome for their debut private placement. This was achieved despite the transaction being priced during a period of significant volatility in the funding market. We look forward to seeing Clanmil use this platform to continue tackling the housing challenges in Northern Ireland by providing good-quality homes in safe supportive communities.”

Today’s announcement comes on the back of Clanmil, at the end of 2021, having successfully completed the refinancing on more advantageous terms of £150m of existing loan facilities that were about to expire.

Clanmil is continually seeking development opportunities that will help increase the social housing provision in areas of housing need throughout Northern Ireland and would like to hear from landowners and developers who have sites with development potential