Regenda raises £55m towards growth plans

North West housing provider the Regenda Group has raised £55m in a private placing with M&G Investments to help it achieve its aim of providing an additional 1,000 homes.

The deal – which had RBS acting as agent on the transaction – attracted an 'all-in' average interest rate of 4.988% for terms between 30 and 40 years.

The money raised is in addition to a £10m facility Regenda agreed with Yorkshire Building Society earlier this year.

Headquartered in Bolton, the Regenda Group was formed in 2002 and owns and manages more than 13,000 homes, including sheltered housing.

It works across the North West in over 30 local authority areas ranging from Congleton in the south to Fleetwood in the north, Wirral in the west and Tameside in the east.

Catherine Lynagh, executive director of finance at the Regenda Group, said: "We attracted a good level of interest and the very competitive level of pricing we achieved is testament to the strong financial position of the group."

Last year, Regenda unveiled a plan to provide 1,000 additional homes.

The group has purchased a private lettings agency to deliver on these aims and acquired 170 homes in Cheshire in a stock transfer with Guinness Northern Counties earlier this year.

Regenda also plans to increase its commercial activity to support its core social purpose.

David Jepson, interim chief executive of the Regenda Group, said: "This deal places the group on exactly the right path to continue with our growth and development ambitions; ensuring we have sufficient funding in place to deliver our aims in the period of our Group Corporate Plan and beyond."

Mark Davie, head of social housing at M&G Investments, said: "We are pleased to have completed this financing deal with Regenda Group, which will enable them to achieve their goals over the coming years.

"We've now invested well over £3bn in UK social housing and plan to continue to do so."