69,000-home landlord to use money to improve existing homes
Riverside has issued a £250m bond.
Money raised from the 25-year bond will be used to improve the 69,000-home association’s existing housing stock. This includes bringing properties up to Energy Performance Certificate ‘C’ and completing a cladding remediation programme by 2028.
Riverside said the bond was oversubscribed with around £1bn in offers.
Paul Dolan, said: “We’re extremely pleased we achieved strong investor appetite, reflected in the pricing we achieved considering the challenges within the operating environment. With almost £1billion of offers on the table at the peak and finishing with an orderbook of more than 2.5 times, it’s clear that investors share in our purpose and are placing their trust in us.”
The bond issue comes days after Riverside published its annual financial statements, which showed the landlord has improved its operating margin and moved back into surplus after two years of deficits.
The group has previously cited challenges relating to its merger with One Housing, cladding remediation and the need to exit loss-making activities such as the Baycroft care business among the reasons for deficits in the two previous years.
Dolan said: ““Our 2025 financial results and this investment is a clear demonstration we have turned a corner and are starting to realise the long-term benefits of our merger with One Housing. We’re committed to continuing to improve our financial capacity in a sustainable and sensible way.”
The bond was priced at 1.25% over gilt, wider than the 0.82% Bromford Flagship achieved for a 25-year £300m issue in July, which was the tightest spread in the sector for several years.
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