Pension Insurance Corporation (PIC), a 拢16.6bn (鈧�21.4bn) specialist insurer of defined benefit pension funds, has invested 拢40m in secured debt issued by mhs homes, a social housing provider based in Kent, south-eastern England.
The deal was done on a bilateral basis, with JC Rathbone Associates鈥� (JCRA) Social Housing team acting as arranger, and Altair Consultancy as adviser to mhs homes.
PIC said it has invested around 拢500m in social housing through bilateral deals to date.
This fresh deal is PIC鈥檚 first with mhs, 麻豆映画 Real Estate understands.
One of its latest deals prior to this was a 拢70m investment in .
The deal with mhs took the form of a private placement, with a maturity of 34 years to match PIC鈥檚 liabilities.
The debt is secured on social housing properties and will be drawn in two stages over the next two years.
The funding will help provide more than 400 new properties, according to PIC.
Elizabeth Cain, debt origination analyst at PIC, said: 鈥淭he transaction meets mhs homes鈥� need for flexible but fixed funding costs and also meets our need for very long-term, secured cashflows to match our liabilities.
鈥淧IC continues to be an active lender to housing associations, and we expect to see more such deals as the sector responds to the recent regulatory changes.鈥�
PIC鈥檚 first social housing deal was in 2012, when it , which later merged with Jephson to become Stonewater.
The insurer tends to stick with bilateral transactions for smaller deals but has , secured against a portfolio of landing slots at London鈥檚 Heathrow Airport.
Elsewhere, it was recently announced that two BAE Systems pension funds in UK affordable housing provider Rentplus, with their in-house manager having approved an initial 拢35m investment that may be followed by a further commitment of the same size.
In 2013, Lancashire County Pension Fund, a UK local government pension scheme, .
The terms of the mhs private placement were not disclosed.
