For-profit provider aiming to deliver 30,000 homes by 2030

For-profit provider Sage Homes has raised £270m on the bond market as it seeks to deliver 30,000 homes by 2030.

The provider, which is backed by investment giant Blackstone, has refinanced 2,123 of its existing properties.

Sage Countryside Freeks Farm (1)

Freeks Farm is a partnership between Sage, Countryside and Homes England to deliver 237 affordable homes

The social and sustainable commercial mortgage-backed security (CMBS) bond, which was announced by credit rating agency Standard & Poors yesterday morning, was arranged by Goldman Sachs alongside Barclays.

The bond is understood to align with green bond guidelines. These include the sustainability bond guidelines and green bond principles and social bond principles, as administered by the International Capital Market Association, and the green loan principles and social loan principles, as administered by the Loan Market Association, Asia Pacific Loan Market Association, and Loan Syndications and Trading Association.

John Goodey, chief financial officer of Sage Homes, said: “This successful raising of funds further highlights our commitment to innovate in capital markets, enabling Sage to build a sustainable business providing thousands of affordable homes across England.

“We are proud that this latest offering has received a sustainable, social and green bond designation, following our previous one in 2021, which was the first of its kind in Europe. This further demonstrates Sage’s commitment to leading the sector on sustainable housing delivery.”

>>See also: Sage Homes ‘extremely sorry’ for failing to support vulnerable residents

Sage forward buys home for use as intermediate and affordable rent homes at 60%-80% of market rent and shared ownership. Since 2023 it has managed properties in-house, having previously outsourced housing management to housing association giant Places for People.

It said it has delivered 19,000 homes to date and has 3,500 in its delivery pipeline. It aims to deliver 30,000 units by 2030.

Sage Homes is currently in the process of recruiting a new chief executive following the announcement earlier this year that Mark Sater will stand down.

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