MUFG has provided Richmond Housing Partnership (RHP) with a £35m loan, supporting the housing association to deliver its strategy of delivering up to 2,000 new homes across West and South West London over the next 8 years.
The revolving credit facility will give RHP the additional liquidity it needs to support its operations, including its housing development programme, which aims to invest £250m over the next eight years.
MUFG worked as an agent on the transaction, structuring and financing the seven-year loan facility with a variety of extension options.
Sanjay Narbheram, MUFG's Director of Housing Finance in EMEA, stated:
“Building housing is top of the agenda for national and local governments and housing associations like Richmond Housing Partnership are playing an important role in responding to this demand. RHP already manages 8,000 homes in their London boroughs and we are very pleased to play a part in enabling them to build more. MUFG is committed to being a long-term partner to housing associations and providing them with innovative financing solutions to help them succeed and grow."
Philip Day, RHP's Executive Director of Finance, stated:
“It is very important that RHP has well priced funds in place well in advance of need as we increase our development programme over the coming years. I'm very pleased that this deal with MUFG introduces a new funder to RHP's portfolio and hope that this is the start of a positive long term relationship."
With this latest deal, MUFG has now committed £500m to the UK social housing sector and plans to extend this in the future.