Aviva Investors completes £50m private placement with Hightown Housing

Aviva Investors completes £50m private placement with Hightown Housing Association
Kingfisher Place, Aylesbury Image: Hightown Housing Association

Aviva Investors has completed a private placement which sees it provide £50 million in funding to Hightown Housing Association.

Hightown owns and manages more than 8,700 homes and care and supported housing projects across Hertfordshire, Buckinghamshire, and Berkshire.

Aviva Investors said the investment would help Hightown continue its delivery of new, energy-efficient, and affordable housing across the region.

The Association is currently aiming to provide more than 1,000 new homes over the next two years, including its flagship development of 158 homes and three commercial units in Hemel Hempstead which is due to complete in April 2024.

Aviva Investors made the investment on behalf of the Aviva UK Life annuity business, reflecting its continued desire to align investment activity with support for projects across the UK that can deliver social value and long-term benefits for local communities.

It is the 16th investment made by Aviva Investors into the sector since June 2020, with the asset manager having provided almost £800 million of financing to housing associations across the UK on behalf of its investors during that time, including Cross Keys Homes, Peaks & Plains, Wales & West, Coastal and Settle.

Munawer Shafi, Head of Structured and Private Debt at Aviva Investors, said: “We are very pleased to have completed this investment with Hightown and to support its provision of additional affordable and energy-efficient homes across multiple counties. With a well-invested stock of existing homes and Hightown’s focus on tackling homelessness, this was an excellent opportunity to commence a relationship and support a dynamic and fast-growing Association. Its leadership team has delivered over 4,100 affordable tenure homes in the last ten years, which fits with our preference for investment opportunities that can also contribute to positive impacts at a societal level.”

Marcus Mollan, Investment Director, Aviva UK Life, added: “As a large and long-term investor in the UK, we are acutely aware of the power our investment activity can have in supporting communities across the UK to get ready for the future. By working closely with Aviva Investors we are able to provide funding for projects such as those being delivered by Hightown, which benefit society whilst also providing an investment which supports retirement income for our customers.”