Tayside housing association has £75m to spend on new homes

A Tayside housing provider is investing £75 million in new energy-efficient homes.

Caledonia Housing Association will build new homes across Dundee and Perth and invest in its existing properties.

Plans have been approved for 40 new affordable energy efficient homes in Rosebank Street and 30 are in development at Coldside Road in Dundee.

The fundraising was supported by NatWest to raise the profile of the association in the capital markets and generate interest from investors.

This resulting in bids which were nearly five times the launch amount.

The deal will allow Caledonia to draw down the funds in three tranches.

A ‘significant milestone’ welcomed

The housing association’s director of finance and governance Leigh Grubb welcomed a “significant milestone”.

He said: “Providing affordable and energy-efficient housing in Tayside and throughout Scotland is central to our strategy.

“The completion of this funding package is a significant milestone for Caledonia Housing Association.”

He added it gives investors an opportunity to support the current housing development programme.

“This funding exercise also underlines the commitments the Association has already made to its broader sustainability agenda,” he said.

“We are pleased to have the support of our new investors as we set out to deliver on our key goals.”

Bank ‘proud’ to help housing association

George Flynn, financing solutions, NatWest said the bank was “proud” to have played a part.

He said: “This has enabled Caledonia to develop strong and supportive investor relationships.

“It has allowed the association to develop a funding package that is “closely aligned to their business plan requirements.

“Not only does this further reinforce our support for the housing association sector.

“It is also demonstrable of NatWest’s commitment to supporting clients in articulating their ESG (environmental, social and governance) journeys.”

Caledonia Housing Association is one of Scotland’s leading providers of high-quality affordable homes.

Registered in Perth, it owns and manages more than 5,618 social rented homes in eight local authority areas.

It recently completed a “life-changing” £4m project to refurbish 72 Perth homes.