Supporting Great Places to tackle the UK housing crisis

04 February 2021

Other news

View more news

More than just a landlord

Great Places Housing Group, which owns over 24,000 homes across the North West and Yorkshire, is much more than just a landlord: the Manchester-based profit-for-purpose organisation offers a wide range of services for its residents, including support that promotes independence and wellbeing for some of society's most vulnerable people.

Great Places Housing Group operates in two of England’s most important devolved regions, Greater Manchester and Sheffield City Region and has developed over 6,000 new homes over the past 10 years, with a core aim to maximise investment in affordable, high quality and sustainable homes.

The Group reinvests any surplus in full to build new homes and enhance its services. The company also aims to achieve an Energy Efficiency Performance rating of C or better for all its homes by 2028.

£70 million retained portion of existing bond attracts new investors

In order to issue the final £70 million retained portion of its existing £345 million bond, due in 2042, the housing association turned again to NatWest to manage the launch and to advise on investor communication and selection.

Following a day of group and individual investor presentations, investors showed strong appetite resulting in a fast growing, seven times oversubscribed order book, which allowed Great Places to price the sale at an extremely competitive spread of 120 basis points and an all-in cost of 1.998%.

With over 30 investors submitting orders, Great Place not only managed to raise funds amongst those investors who had already supported the firm’s initial bond and subsequent tap issuances, but also attracted new parties – emphasising the housing association’s compelling sustainable growth story.

The money raised will go towards funding the group’s affordable home development programme.

Building new homes and vibrant, sustainable communities

Commenting on the issue, George Flynn, Debt & Financing Solutions at NatWest, said: “We’re delighted to support Great Places with this highly successful retained sale. Through careful planning and clear investor messaging, the Great Places team captured investors’ attention resulting in significant oversubscription and a negative new issue concession. The result is testament to the strength of the credit story, the agility, and speed of execution. We’re excited that we can actively contribute to social, economic and environmental progress in the UK through this and many similar transactions.”

Phil Elvy, Executive Director of Finance for Great Places Housing Group, stated:
“Great Places is delighted with the brilliant outcome of this transaction and we have really valued the guidance and support of the NatWest team in helping us to this successful conclusion. From the initial kick-off meeting right through to the final pricing NatWest have been exemplary in their professional approach and the advice they have provided.”

This article has been prepared for information purposes only, does not constitute an analysis of all potentially material issues and is subject to change at any time without prior notice. NatWest Markets does not undertake to update you of such changes.  It is indicative only and is not binding. Other than as indicated, this article has been prepared on the basis of publicly available information believed to be reliable but no representation, warranty, undertaking or assurance of any kind, express or implied, is made as to the adequacy, accuracy, completeness or reasonableness of the information contained in this article, nor does NatWest Markets accept any obligation to any recipient to update or correct any information contained herein. Views expressed herein are not intended to be and should not be viewed as advice or as a personal recommendation. The views expressed herein may not be objective or independent of the interests of the authors or other NatWest Markets trading desks, who may be active participants in the markets, investments or strategies referred to in this article. NatWest Markets will not act and has not acted as your legal, tax, regulatory, accounting or investment adviser; nor does NatWest Markets owe any fiduciary duties to you in connection with this, and/or any related transaction and no reliance may be placed on NatWest Markets for investment advice or recommendations of any sort. You should make your own independent evaluation of the relevance and adequacy of the information contained in this article and any issues that are of concern to you.

This article does not constitute an offer to buy or sell, or a solicitation of an offer to buy or sell any investment, nor does it constitute an offer to provide any products or services that are capable of acceptance to form a contract. NatWest Markets and each of its respective affiliates accepts no liability whatsoever for any direct, indirect or consequential losses (in contract, tort or otherwise) arising from the use of this material or reliance on the information contained herein. However this shall not restrict, exclude or limit any duty or liability to any person under any applicable laws or regulations of any jurisdiction which may not be lawfully disclaimed.

NatWest Markets Plc. Incorporated and registered in Scotland No. 90312 with limited liability. Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. NatWest Markets N.V. is incorporated with limited liability in the Netherlands, authorised and regulated by De Nederlandsche Bank and the Autoriteit Financiële Markten. It has its seat at Amsterdam, the Netherlands, and is registered in the Commercial Register under number 33002587. Registered Office: Claude Debussylaan 94, Amsterdam, the Netherlands. Branch Reg No. in England BR001029. NatWest Markets Plc is, in certain jurisdictions, an authorised agent of NatWest Markets N.V. and NatWest Markets N.V. is, in certain jurisdictions, an authorised agent of NatWest Markets Plc. NatWest Markets Securities Japan Limited [Kanto Financial Bureau (Kin-sho) No. 202] is authorised and regulated by the Japan Financial Services Agency. Securities business in the United States is conducted through NatWest Markets Securities Inc., a FINRA registered broker-dealer (http://www.finra.org), a SIPC member (www.sipc.org) and a wholly owned indirect subsidiary of NatWest Markets Plc.

Copyright 2021 © NatWest Markets Plc. All rights reserved.