PIC invests £40m in social housing provider

Written by Adam Cadle

14/12/2022

Pension Insurance Corporation (PIC) has invested £40m as debt in Housing Solutions, which owns and manages c.7,500 properties in the South East of England.

Following a competitive process run by Centrus, PIC was selected as the preferred capital markets funder in a total transaction of £100m, with the remaining £60m to be bank funded. PIC offered funds for immediate drawdown and a long-dated maturity in 2060.

PIC’s investment in Housing Solutions will be used to help achieve the housing association’s target of building 350 new homes by 2026, of which 70% will be for social and affordable rent, and 30% for shared ownership.

Celia Lopez, debt origination manager at PIC said: “We are delighted to have been able to make our first investment in Housing Solutions. PIC’s purpose is to fund the pensions of our current and future policyholders now and in the long-term. Investing in the housing association sector and other illiquid assets allows PIC to generate enhanced yield, helping us to secure more pension liabilities. This, in turn, means more trustees can guarantee their members’ pensions through buy-ins and buyouts, greatly improving their financial security in retirement.”

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