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£250m boost for East Lancashire housing project
9:00pm Saturday 8th December 2012 in News
AMBITIOUS housebuilding plans for East Lancashire will be boosted by a £250million bond issue by the region’s largest social landlord.
Together Housing, which oversees Twin Valley, Housing Pendle and Green Vales Homes, has staged a successful capital-raising assault on the money markets.
Their 30-year bond, with a 4.5 per cent rate of return for investors, was heavily oversubscribed when it was unveiled on Thursday.
Around £200million worth of bonds were issued on the first day and orders of £1billion were placed. The remaining bonds are also expected to attract similar levels of interest.
The outfit, which was only formed two years ago, had earlier secured a AA3 rating, signifying a ‘high-quality and low credit risk’ investment option.
Victor Flynn, the firm’s corporate funding group director, said: “The bond issue will provide us with funding to build new homes, to take advantage of new opportunities, and to grow and develop our business in many new and exciting ways.”
Work has begun this week on a joint Together and PlaceFirst scheme to renovate 200 homes in the Woodnook area of Accrington.
And earlier this year Together confirmed it was intending to build 249 ‘social housing’ properties across Hyndburn, Pendle and Rossendale.
Using part of a £15million grant from the Housing and Communities Agency grant, the largest single project was for Twin Valley, promising 116 homes for sale, and another 56 shared ownership homes.
Another 51 properties are anticipated for Pendle and 20 rental and shared ownership houses will be constructed in Rossendale.
The company has also been named as the prefered bidder for a £430million contract to overhal the Pendleton area of Salford.