SWAN Group has secured a £50 million growth capital deal to deliver more than 3,000 affordable houses across Scotland.
The Glasgow headquartered firm said that the five-year equity facility was provided by an ‘institutional funder who is focused on backing real estate businesses that occupy niche positions in scalable markets.’
Swan Group has been developing affordable housing for housing associations and local authorities since 2013, and with the help of Conduit Finance will seek to use the funding to accelerate their growth – with Swan Group estimating the value of the development to stand in excess of £420 million.
Phil McGinlay, Swan Group’s managing director, said,“While over 1.3m UK families languish on waiting lists for affordable housing, the trend for the construction of high-quality, affordable housing continues to decline. Securing this new growth capital facility will allow us to support our partners in housing these families much faster.
“The funding will also help us deliver our strategic growth objectives more quickly. It’s been a pleasure to work with Jamie and Jason on this transaction and we look forward to partnering with Conduit Finance in the future.”
Jamie Davidson, managing director at Conduit Finance, commented, “Transferring from a time consuming, and cash intensive, SPV (Special Purpose Vehicle) by SPV funding Model, to a corporate grade facility will allow Phil and the Swan Group team to focus on building more houses.
“Following the introduction from Geoff Stansfield at DWF solicitors Conduit helped identify the most efficient capital model, and provider, for delivering the Swan Group growth plan. We’re proud to be able to assist a business which is having a positive impact on society. We look forward to supporting Swan Group during this next period of growth.”