Andium Homes secures £100 million from private investors

Tuesday 03 December 2024

The Government's social housing provider has secured £100 million from private institutional investors to fund more than 250 new homes within the next four years.

Andium Homes raised the funds through the private placement market, drawing interest from across the UK and North America.

This type of borrowing tends to involve institutional investors, such as pension funds, which build large portfolios.

In a statement, Andium said the £100m would help fund its ongoing building programme, which is focusing on the delivery of new family homes across sites earmarked for development through the Bridging Island Plan.

Lindsay Wood, Andium’s Chief Finance and Operations Officer, described the funding as a testament to the “strength” of the States-owned company’s business model amid “challenging market conditions”.

Pictured: Lindsay Wood is Andium’s Chief Finance and Operations Officer.

“I am incredibly proud of the professionalism and values of the Andium team,” she continued.

“This is an example of us working together at our best to fulfil our commitment to helping as many islanders as possible to access our homes either through social rent or affordable purchase.”

Giles Barling, a partner at EY Debt Advisory, said the firm was “delighted” to have helped Andium secure the funds.

“EY is proud to be Andium’s retained debt adviser and to support the management team on achieving its objective to provide high-quality affordable homes for islanders who need them most,” he added.

Aline Ayotte, the Head of Commercial Banking for HSBC Channel Islands and Isle of Man, said: “We were delighted with the interest shown by so many investors in Andium and its plans to deliver more high-quality housing for the benefit of islanders.

“We see their commitment as a vote of confidence in Jersey’s future.”

Lloyds’ head of fiduciaries, funds and commercial within the Crown Dependencies, Matt Juniper, also said the bank appreciated working with Andium “on their first capital markets transaction”.

He added: “The successful outcome reflected Andium’s clear sense of social purpose, proven track record and long-term strategic role in delivering affordable and sustainable housing in the island.”

Andrew Weiler, a partner in O’Melveny’s London office, said: “Navigating Andium through the legal process on their debut USPP has been a privilege, knowing how Andium will be using such proceeds to further its mission to provide affordable social housing.”