Pension Insurance Corporation plc (“PIC”), a specialist insurer of defined benefit pension funds, has completed a further £30 million debt investment in Apex Housing Association (“Apex”), following an initial investment of £100 million with Apex completed in 2021. PIC’s other investments in Northern Ireland include the £55 million invested in Clanmil Housing Association.
The investment will support the development of 300 to 400 new homes per year as part of Apex’s long-term strategy. The new homes funded by the investment will be extremely energy efficient. Apex intends all new homes to have a minimum EPC rating of ‘A’ from 2024.
Apex is a regulated housing association currently managing over 7,000 homes in Northern Ireland and is the third largest housing association in the country. Apex is regulated by the Department for Communities, part of the Northen Ireland Assembly. It delivers properties with a range of tenures, with a focus on general needs accommodation but also including supported housing, housing for vulnerable groups and support services for tenants.
To date, PIC has invested over £3 billion in social housing across the UK. PIC has supported the social housing sector in all four countries of the United Kingdom, making its first investment in the sector in 2012.
Roderick Canning, Finance Director at Apex, said: “We are delighted to have secured this transaction with PIC to continue our development programme over the coming years. PIC is a valued partner following our initial transaction in 2021 and having the opportunity to work again with a team that has such a strong understanding of the social housing sector makes for an efficient and successful process. We valued PIC’s flexibility, including the ability to defer drawdown.”
Celia Franch Lopez, Debt Origination Manager at PIC, said: “We are very pleased to have worked with Apex Housing Association on this transaction, and to be able to help them create social value within Northen Ireland. The investment provides an attractive risk profile in an
area of high demand for social housing. In addition, the maturity profile is well-suited to our liabilities. This investment complements our portfolio, providing low risk, long-term, secure cashflows that match our pension liabilities for decades into the future.”
TradeRisks acted as sole arranger and dealer for the transaction on behalf of Apex Housing Association on the private placement.