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Wheatley Group secures £76.5m investment to build 700 affordable homes

A housing group has secured a £76.5 million investment that will enable it to build hundreds of new affordable homes.

The Wheatley group said the deal will enable its commercial subsidiary Lowther Homes to buy 560 mid-market rent properties currently owned by three of the group’s registered social landlords.

This, in turn, will allow the housing associations – GHA, Cube and Dunedin Canmore – to use the proceeds to build 700 new homes as part of Wheatley’s wider ambition to complete 7,500 affordable houses and flats through to 2025.

The 25-year “debt funding” deal is being provided by Scottish Widows, through its partnership with the Bank of Scotland’s real estate and housing team.

Wheatley chairman Alastair MacNish said: “This is a significant milestone in our ongoing efforts to boost the supply of affordable homes across the country in support of the Scottish Government’s More Homes Scotland agenda.

“It is a massive vote of confidence by Scottish Widows and the Bank of Scotland in both Wheatley and the affordable housing sector, and one that will lead to hundreds of new, affordable, high-quality, energy-efficient homes.”

Wheatley, a housing, care and property management group, said it is the first deal of its type in Scotland.

Jason Morris, director of loan investments at Scottish Widows, said: “Structuring this long-term loan provides Wheatley Group with the certainty of fixed-rate funding for the next 25 years.

“We are delighted to support the provision of much-needed affordable homes building on our previous commitments to the housing sector.”

Alan Brennan, relationship director at Bank of Scotland real estate and housing, added: “We worked closely with the management teams at Wheatley and Lowther Homes to structure a bespoke deal that provides them with both long-term funding stability and significant capacity to increase their development programmes. “