NIFHA member Clanmil Housing Group has today confirmed it will build 2,500 new social homes over the next eight years and modernise some existing homes after securing a £135m finance agreement with three lenders in Northern Ireland.
The package combines loans from Danske Bank (£60m), First Trust (£50m) and Ulster Bank (£25m), all on attractive terms, and will enable Clanmil to access grants from the Department for Communities, combining public and private funding to create a total investment of some £315m.
The investment is expected to generate up to 500 construction jobs and support more than 400 associated jobs in the supply chain.
Clanmill secures £135m for major social housing scheme https://t.co/79cHt0mFMc
— BBC Newsline (@bbcnewsline) June 30, 2016
Steve Amos, Chair of Clanmil Housing said: “Deals of this volume and with three lenders represent a strong vote of confidence in the social housing sector and our ability to deliver on ambitious targets.
“This funding package will allow Clanmil to continue our programme of development, helping reduce the housing waiting list by building high quality homes in areas where they are needed most and strengthening those communities by creating great places to live.
“It is good to see banks investing with confidence in large social programmes like ours and we’ve worked smartly to secure a mix of funding that will yield a range of positive results, including jobs and homes, over the next decade. The deals represent good business for Clanmil and also for the public purse, making the public money available for new homes go much further.
“We are particularly excited to make this announcement so soon after the £280 million EIB deal secured by our colleague housing associations Choice and Apex. Together these investments demonstrate that in addition to our social contribution, the social housing sector in Northern Ireland is playing an important role in bolstering and growing our economy.”
Congrats @ClanmilHousing on securing £135m investment-will build 2,500 new social homes over next 8yrs & create up to 500 construction jobs!
— NIFHA (@NIFHA) June 30, 2016
NIFHA’s Deputy Chief Executive Jennie Donald congratulated Clanmil on securing the finance deal: “This £135m investment is excellent news for Clanmil and also for the housing association sector in Northern Ireland.
“This finance agreement demonstrates the strength of housing associations in Northern Ireland and will allow us to continue to build great homes and thriving communities. Local lenders clearly recognise the financial strength of housing associations and we welcome their continued support for the sector and its ambitious development plans. The 500 construction jobs being created through this investment is a welcome boost to the local construction industry and our local economy.”
— Communities NI (@CommunitiesNI) June 30, 2016
Paul Givan MLA, Minister for Communities, welcomed the investment. He said: “I am once again pleased to be able to congratulate another housing association in obtaining a significant financial package, which along with investment from my Department, will assist in delivering much needed social housing in Northern Ireland and contribute to the local community through the creation of employment opportunities.
“This announcement is another clear statement that both the Executive and local housing associations are determined to deliver high quality, energy efficient homes for those in greatest need across Northern Ireland.”
.@ClanmilHousing has secured bank loans of £135m to help fund 2,500 new social homes in NI over next 8yrs.
— Julian O'Neill (@julianoneill) June 30, 2016
Chris Martin, Head of Social Housing at Danske Bank, said: “Danske Bank is proud to support our long-standing customer Clanmil Housing Group, as it embarks on a significant development and modernisation programme that will provide a much needed boost to the stock of high quality social housing across the country.
“This transaction reflects Danske Bank’s ongoing commitment to provide long term support to the social housing sector and we congratulate Clanmil on a project that will both provide new homes at a time of high demand and jobs for the construction sector.”
Brian Gillan, Head of Business & Corporate Banking, First Trust Bank said: “The creation of 2,500 new social homes is a significant boost for Northern Ireland’s housing sector. We are delighted to support this substantial investment and Clanmil Housing Group’s existing and future development plans.
“Not only will this create much needed jobs in the construction industry and further along the supply chain over the next eight years, it will help existing communities thrive and benefit from Clanmill’s delivery of modern energy efficient homes. This financial agreement demonstrates our continued commitment to support Northern Ireland’s economy and the local social housing sector.”
— Karen Gilmore (@KGilly9) June 30, 2016
Kenton Hilman, Head of Corporate and Property Banking Northern Ireland at Ulster Bank, welcomed the deal: He said: “Ulster Bank has extensive expertise in supporting the housing association sector and meeting their specialised lending needs.
“We’ve been an active supporter of several prominent building programmes by housing association in recent years and we look forward to that continuing.”