Alliance secures £90m in funding to deliver more affordable housing

Alliance Homes has secured £90m in long-term funding from Phoenix Group, it has been confirmed.The investment, which was secured by means of private placement, will support Alliance in developing around 2,000 affordable homes over the next 10 years.Alliance says it will use part of the funds to improve the sustainability of its current housing stock by bringing all homes to an Energy Performance Certificate (EPC) rating of C or better.The funding for the private placement was for a total value of £100m and will be drawn in tranches aligned with Alliance’s business needs.The transaction marks an increase in Phoenix’s UK social housing holdings to above £2.5bn.Phoenix was chosen as lead investor, with funding provided through Macquarie Asset Management.Katrina Michael, chief financial officer at Alliance, added: “The challenges of addressing the current affordable housing shortage while investing in existing homes and communities and becoming more sustainable are top of the agenda for Alliance Homes.“This funding will allow us to meet our corporate goals, and we’re looking forward to continuing our relationship with Phoenix and Macquarie to achieve our ambitions.”James Holkham-Coates, investment manager at Phoenix Asset Management, said: “We are delighted to have provided Alliance with £90m of funding to support its development programme in North Somerset and its decarbonisation ambitions.“This investment further underlines Phoenix’s commitment to help tackle the UK’s housing crisis and support the levelling up of the whole of the UK in a sustainable manner.”Read next: New ministers, old newsAre you a social housing professional? Sign up for a FREE MEMBERSHIP to upload news stories, post job vacancies, and connect with colleagues on our secure social feed.