GCP Infrastructure takes £60m loan to fund social housing investment

Investment fund GCP Infrastructure has set out plans to take out a £60m loan to help finance construction and acquisitions of housing for adults with learning or physical difficulties.

Two loan notes are to be issued by GCP Programme Funding 1, an intermediary company set up for this purpose, which has been financed from the company's August share placing and its revolving credit facility.

The first £50m loan note is for 35 years and will be used to provide funding to buy supported living units.

So far, £37.4m has been subscribed by the FTSE 250 listed company and is secured against the properties, which are subject to one or more 50-year repairing and insuring leases with housing associations in England regulated by the Homes and Communities Agency (HCA).

The second £10m loan note, for up to two years, will be used to provide funding for the development of new supported living units, also secured against the properties, which will have a lease agreement with one or more housing associations in England regulated by the HCA.