Leading Midlands landlord whg has successfully raised a further £50m on the bond market to finance its growing development programme.
whg had originally secured a £250m bond with a 4.25% coupon in 2014, of which a portion was retained. The £50m retained bond issue was priced at Gilts+120bps, with a yield of 3.075%.
The additional finance was raised to help fund whg’s development ambitions in the Midlands. whg will deliver up to 2,400 homes by 2021 across a range of tenures, including shared ownership, rent to buy and affordable rent. This will result in whg having a presence in 18 local authorities in the Midlands.
The new finance will complement the £22.1 million that whg secured from the Homes and Communities Agency under the Shared Ownership and Affordable Homes Programme in January 2017.
whg recently published strong financial results, with an operating surplus of £34.2m and an operating margin of 34.5%. whg’s turnover continues to increase and has grown to over £100m.
whg also retains a strong A2 stable rating from Moody’s credit rating agency this year and has been rated G1 and V1 by the HCA.
The investment comes after Santander organised an investors breakfast on behalf of whg at Andaz Studio in London on Wednesday, 26th July. whg was represented by Gary Fulford, whg’s Group Chief Executive; Martin Robertson, Corporate Director of Resources; Rob Gilham, Corporate Director of Operations and Adam Wagner, Director of Finance.
Gary Fulford said: “We are delighted to have sold this portion of the retained bond which will help us to build more high quality homes in the Midlands.
“We are in a strong financial position for the years to come and this additional finance will be used to deliver our ambitious Corporate Plan, which we launched earlier this year.”