Construction and Infrastructure

Mystery US investor helps secure £130m for Gloucestershire housebuilder

Written by: Andrew Merrell | Posted 24 September 2020 6:00

Mystery US investor helps secure £130m for Gloucestershire housebuilder

A Gloucestershire-based house-builder with a difference has revealed it has secured some £130 million to help it build more homes in the county. 

Newent-headquartered Two Rivers Housing is a little different than most, as its focus is affordable homes and its investment is soley focused on Gloucestershire and Herefordshire. 

Italso manages the homes, with more than 4,100 homes across the two counties. 

The pot of cash includes its first private placement investment of £80m from an unnamed “US-based institutional investor. 

Carol Dover, corporate director of resources at Two Rivers Housing, said: “The funding will help us deliver on our promise to build 1,000 new affordable homes in Gloucestershire and the surrounding area by 2028. 

“It will also support regeneration projects and investment in our existing properties as well as the services and support we are able to provide our tenants. 

“We’d like to thank both Chatham Financial, Santander and our legal advisors, Trowers and Hamlins for their help and support throughout this process.” 

The deal was brokered by Santander which acted as the sole placement agent for transaction and worked with Two Rivers Housing to generate interest from investors. 

Due to the Covid-19 pandemic, the Two Rivers executive team pre-recorded its investment pitch, which was presented remotely. It was then followed up with a detailed question and answer session with a select number of US and UK-based investors. 

Prior to the investment Chatham Financial worked with Two Rivers Housing to conduct a detailed analysis of the organisation’s debt portfolio and a review of other service providers including security valuers. 

The result not only secured Two Rivers first ever private placement investment, but also enabled it to refinance its existing debt and raise a new £50m revolving credit agreement. 

Adrian Bell at Chatham Financial said: “Two Rivers has been able to restructure their existing debt portfolio to ensure it meets the requirements of their future investment programme while retaining the relationship with their existing lender and obtaining a very attractive all in cost of debt.”

First published September 23.