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Phoenix Invests in Affordable Housing Across Wales

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Phoenix Group has announced that it has provided £50 million in long-term financing to Barcud Cyf, a not-for-profit Welsh Housing association. The financing will be used to build around 1,000 new energy efficient, affordable homes for people across the mid and West Wales region, enabling Barcud to achieve its strategic objective of reaching 5,000 homes by 2025. The new homes will span across Ceredigion and Powys counties and will support Barcud’s objective to be a sustainable, low carbon housing association.

Phoenix continues to focus on embedding ESG principles into its portfolio, with Barcud standing as the latest example of an investment with this purpose. With this transaction, Phoenix continues to support the Welsh Government’s ambition of providing new, energy efficient homes across rural areas.

Phoenix’s c£10bn illiquid portfolio is investing in a broad range of assets including infrastructure and social housing, with a focus on sustainable housing and affordable homes that help to address the challenge of housing shortages across the UK. Phoenix worked in collaboration with its strategic asset management partner, ASI, to complete this transaction.

Commenting, Michael Eakins, CIO, Phoenix Group, said: “We are delighted to have completed this transaction to provide energy efficient social housing across the mid and west Wales region as we continue to innovate with our capital to drive environmental and social impact. Structuring this deal with energy efficiency targets drives to the heart of our sustainability agenda and our focus on ensuring our investments help to build back better and greener. We know that there is a chronic shortage of housing across the United Kingdom and we are committed to helping people and communities in every corner where we can.”

Kate Curran, Group director of finance and ICT, Barcud said: “The funding from Phoenix has ensured that Barcud can achieve its business plan objectives of providing additional, affordable and energy efficient homes for communities across mid and West Wales. The transaction is linked to our sustainability objectives through various Environmental, Social and Governance measures.”

Fiona Dickinson, investment director, Aberdeen Standard Investments: “With our extensive knowledge of the UK affordable housing sector, ASI was well positioned to play a crucial role in connecting the long-term capital of our strategic partner with this super opportunity to fund new homes in Wales, deliver a positive ESG impact and change people’s lives for the better”.