3 March 2016 | By Guy Montague-Jones
Heylo Housing’s cornerstone investor, Lancashire County Pension Fund, has increased its investment in the shared-ownership specialist from £180m to £300m.
Lancashire County Pension Fund supported Heylo’s launch in September 2014 with an initial investment of £180m, of which Heylo has already invested more than a third and committed the rest.
It is in the process of looking to source an additional £620m via its second bond issuance to fuel its rapid expansion. The bonds are aimed at large corporate pension funds as they offer secure and inflation-linked long-dated income, helping them match their long-term liabilities.
Nicholas McAlpine-Lee, chief executive of Heylo, said the latest commitment from Lancashire County Pension Fund was a vote of confidence in the business.
“As our joint venture partner and cornerstone investor, this additional funding affirms the excellent progress we have made over our first 15 month and supports Heylo’s continued desire to do all that it can to deliver affordable shared ownership housing to communities across the country,” he said.
The company, which is backed by Internos, currently provides more than 600 affordable homes across 40 local authorities and expects to double that by the end of this year.
Under Heylo’s Home Reach contracts, developers and housebuilders build and sell new shared-ownership homes and simultaneously sell the landlord’s position in the leases to Heylo via a framework of contracts designed to operate across multiple sites over several years. Developers typically receive 80% of open-market value at the point of sale.