Sage achieves sector’s largest ever refinancing

Social Housing magazine has exclusively reported that Sage has successfully completed, what is believed to be, the affordable housing sector’s largest ever refinancing.  

Sage has placed its fourth Commercial Mortgage-Backed Securitisation (CMBS), with a total quantum of nearly £546.5m priced at a weighted average of 142 bps over SONIA. The tenor is 5 years, with two one-year extensions. 

In late 2020, Sage opened this new debt capital market to the affordable housing sector through its inaugural £220m CMBS. Since then, Sage has placed two further CMBS, raising a total of £583m prior to this latest transaction. 

John Goodey, Sage’s Chief Financial Officer, said: “This offering, as with Sage’s three previous CMBS, has brought multiple new debt investors to the affordable housing sector. This is not only good news for Sage, but for the sector as a whole. 

“This refinancing will enable Sage to do what it does best: invest in delivering more high-quality, energy-efficient, affordable new homes and turn them into established, stable portfolios, providing a great place to live for those on local authority waiting lists.” 

Since its inception late in 2017, Sage has already delivered more than 21,000 new affordable homes and has a further 2,500 in its pipeline, firmly establishing it as England’s largest provider of affordable new homes for the last five years.

If you have a subscription to Social Housing, you can read the full article here: https://www.socialhousing.co.uk/news/for-profit-sage-raises-nearly-550m-in-major-refinancing-deal-96119