The north’s third-largest housing association Apex has secured another major funding round which will enable it to build up to 400 affordable new homes every year.
Pension Insurance Corporation (PIC), a London-based specialist insurer of defined benefit pension funds, has completed a £30 million debt investment in Apex, following an initial £100 million input with the associated in 2021.
The move will support the development of between 300 and 400 new energy-efficient homes every year as part of Apex’s long-term strategy.
PIC has so far invested more than £3 billion in social housing in the UK, and as well as Apex, it has supported Clanmil Housing Association to the tune of £55 million.
Apex, which is currently managing more than 7,000 homes across the north (primarily in the north west) is regulated by the Department for Communities.
It delivers properties with a range of tenures, with a focus on general needs accommodation but also including supported housing, housing for vulnerable groups and support services for tenants.
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Roderick Canning, finance director at Apex, said: “We’re delighted to have secured this transaction with PIC to continue our development programme over the coming years.
“PIC is a valued partner following our initial transaction in 2021 and having the opportunity to work again with a team that has such a strong understanding of the social housing sector makes for an efficient and successful process.
“We valued PIC’s flexibility, including the ability to defer draw-down.”
Celia Franch Lopez, debt origination manager at PIC, added: “We’re very pleased to have worked with Apex Housing Association on this transaction, and to be able to help them create social value within Northern Ireland.
“The investment provides an attractive risk profile in an area of high demand for social housing. In addition, the maturity profile is well-suited to our liabilities.
“This investment complements our portfolio, providing low risk, long-term, secure cashflows that match our pension liabilities for decades into the future.”
TradeRisks acted as sole arranger and dealer for the transaction on behalf of Apex Housing Association on the private placement.
