Magenta Living Lines Up £77m to Build 1,300 Homes by 2030

Magenta Living has secured £77m of funding to build new homes across the Liverpool City Region. The housing provider, Wirral's largest, plans to deliver 1,300 homes in the region by 2030.

Two of the deals are described as landmark agreements and are worth £22m together. One is a £12m loan from the Charities Aid Foundation Bank, known as CAF Bank. It is one of the bank's largest ever loans. The other is £10m from Danske Bank, which is based in Northern Ireland and is said to be eager to expand into the English market.

What the CAF loan pays for

The CAF money will go on new homes for social rent, with a strong focus on energy efficiency. The loan is meant to help the new homes reach an EPC rating of B or above. It includes 94 "green homes" in Birkenhead.

Paul McGrady, Magenta Living's chief finance officer, said both organisations had to invest in new processes to make the loan happen. "It has been worth it to be able to collaborate with a bank that has such a strong history of social value," he said.

Iain Smith, CAF Bank relationship director, said the bank works only with charities and social purpose organisations. He said the way Magenta Living builds safe and secure homes "couldn't be a better example of an organisation we are proud to support".

Danske and the Wirral plan

McGrady said the Danske arrangement reflects Magenta Living's decision to grow and provide more homes in Wirral. He said the housing provider is moving quickly to put its capital to work on new properties and on refurbishing homes.

"The success of our funding round is also a vote of confidence in Wirral, and we will be returning to market again to further fund our ambitious programme," McGrady said.

Terri McCullagh, relationship director at Danske Bank, said the deal is particularly significant because it is the bank's first housing association financing in the Liverpool City Region. The bank, she said, has an established and growing presence in the social housing sector across the UK.

Source: Liverpool Echo