Clanmil secures £180m deal for homes

Published Tuesday, 01 April 2014
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Clanmil Housing Group has announced a major funding agreement with a potential value of £180m which will see it build 1,600 homes for around 5,000 people.

Clanmil secures £180m deal for homes
The Finance and Social Development Ministers welcomed the announcement. (© Presseye)

The group has secured loans of over £100m to build and maintain its current housing stock.

The agreement will also allow the organisation to access up to £80m in funding from the Department of Social Development.

Overall the deal represents a potential value of around £180m and the investment is expected to generate almost 600 construction jobs over four years and provide support for another 400 people involved in the supply chain.

Steve Amos, chair of Clanmil Housing, said: "This is really good news in a tough lending market.

"Faced with growing demand for social housing and increasing constraints on statutory funding, our challenge is to find new funding sources that will support continued investment in social housing and make the available public money go further.

"Thanks to strong working relationships with the banks and their confidence in Clanmil's financial management, we have been able to agree a mix of funding at very competitive rates and with a range of tenures to support the delivery of such a large affordable housing investment programme.

"This funding leaves Clanmil well placed to continue to play a major role in the provision of good affordable homes for people in housing need.

"The Northern Ireland economy will also benefit from much needed jobs for the local construction industry."

Welcoming the announcement, Social Development Minister Nelson McCausland added: "This funding will be welcomed by prospective tenants and the building industry.

"The next three years of the Social Housing Development Programme will see housing associations significantly step up output to deliver 2,000 new homes each year and Clanmill will play a key role in achieving these targets," the DUP minister said.

DUP Finance Minister Simon Hamilton added: "This financial package demonstrates a growing confidence in an economy where banks are prepared to invest in sound projects such as the planned housing schemes.

"It is good news for those in need of housing, good news for jobs and good news for the construction sector."

Danske Bank and Barclays Bank, which are providing the loans said they were delighted to support the social housing sector.

© UTV News
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1 Comments
Thrifty in Belfast wrote (242 days ago):
Good to see a private sector housing body getting this money,, at least the money will be well spent instead of squandered down the drain by the Northern Ireland Housing Executive,,well done Minister McCausland,,keep NIHE away from taxpayers money
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