Real estate

Japan's biggest bank enters market with £265m Anchor deal

Houses - Largest bank in Japan has done its first UK social housing deal - SantanderCB

The largest bank in Japan has done its first UK social housing deal. Bank of Tokyo-Mitsubishi UFJ has provided a £265m loan facility to older people's housing organisation Anchor Trust as part of a syndicate, which included Santander and was led by Barclays. KPMG advised on the seven year, revolving facility. Sarah Jones, Anchor Trust's finance director, said the Japanese bank had been interested in getting involved in UK social housing for a while. It had been interested in contacting Anchor and the housing association had been looking to do a deal so 'there was great serendipity'. She explained: 'The profile we wanted was quite unusual for a housing association because we wanted a seven year revolver and not all banks would support seven years. Revolving facilities would tend to be about five years.' She said the organisation is in the first year of a five-year plan so the profile of its borrowing lends itself to a seven year term. Anchor and the banks started negotiations before the July Budget, which announced the four-year rent cut and 'Pay to Stay', and completed the deal afterwards. But Jones said the terms of the deal remained the same throughout despite the Budget announcement. She declined to reveal the margin on the loan. Marc Finer, associate director at KPMG, said: 'This deal will enable Anchor to grow its business and continue to provide and develop much needed housing and care services across the country. It is notable that the funding has been secured against the backdrop of more challenging financing conditions for the sector, following Summer Budget announcements around social housing rent, Right to Buy and Pay to Stay, indicating the strength of Anchor's credit position.'


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