Macquarie invests in social housing

Infra debt fund invests in refi for housing association; long-term partnership will ‘help meet demand for affordable housing’

Macquarie Infrastructure Debt Investment Solutions (Midis) has arranged and financed an £80m loan to Cottsway Housing Association.

Under the deal, which will be drawn down in two tranches and mature in 2055, the partners will work to increase the provision of affordable housing in west Oxfordshire.

The agreement will also enable Cottsway to access a further £50m of borrowing from Midis under substantially similar terms.

“This transaction leaves Cottsway well placed to pursue our strategic objectives of meeting the significant excess demand for affordable housing in our region,” said Richard Reynolds of Cottsway. “We look forward to a long-term partnership with Midis who demonstrated a clear understanding of our needs in tailoring a solution, and whose capacity for delivering additional financing in future represented a compelling proposition.”

The deal is the first foray into the regulated social housing sector for Midis and as a result the fund has hired Will Meers who, in his previous role, was responsible for advising many of the largest housing associations on their debt and derivative portfolios.