Newly-launched housing group GreenSquareAccord will benefit from a £50 million funding deal, executed by MUFG. GreenSquare Group closed the deal as it prepared to complete its merger with Accord Housing Association to create GreenSquareAccord. The facility was initially £25 million but was increased to a total of £50 million in line with the successful steps towards partnership between the two companies.
The merger will mean an uptick in the scale and capacity to build hundreds more new homes each year across a larger operating area, increasing available resource for investment in existing homes and widening the overall offer to customers.
Prior to the merger, GreenSquare already owned and managed over 12,000 properties and built new homes for sale to help fund more social homes and to improve services for customers across Wiltshire, Oxfordshire, and Gloucestershire. Accord was a similar size to GreenSquare and one of the largest housing and social care organisations in the Midlands; it provided 13,000 affordable homes and supported around 80,000 people with health and social care.
The transaction was executed by MUFG using Sterling Overnight Index Average (SONIA) interest benchmark.
Sanjay Narbheram, Head of Housing Finance at MUFG EMEA, commented: “We are delighted to have supported GreenSquare at this critical juncture in their journey. MUFG is proud to support clients who share the same vision of long-term sustainable growth in the UK housing sector, and helping to enable the development opportunities which will come through this merger is no exception. We look forward to continuing to build on our relationship with GreenSquareAccord as they start this exciting chapter.”
James Tarrant, Group Head of Corporate Finance & Treasury at GreenSquareAccord, added: “The support from MUFG since they provided initial funding last year has been significant both in delivery of our funding platform and also our wider corporate finance strategy. Their provision of additional funding in advance of the completion of the partnership is an important step towards achieving our ambitions to do more for both existing and new customers as we move forward.”