Magenta Living, Wirral’s biggest housing provider, has secured £77m of financing to fund their target of building 1300 new homes by 2030 in Liverpool City Region. The financing includes two landmark deals. £12million with the Charities Aid Foundation Bank (CAF) is one of the banks largest ever loans, and £10m with Northern Ireland-based bank Danske who are eager to expand to the English market.
CAF Bank’s loan will be used to build new properties for social rent with a strong focus on energy efficiency. A CAF Bank Green Loan means cheaper borrowing and a partnership approach to achieving EPC ratings of B or above in the new homes, specifically the development of 94 green homes in Birkenhead.
The loan reflects the strong social value credentials of Magenta Living and their investment in the community, which aligns well with CAF Bank’s mission to create ‘positive change’.
“CAF Bank is solely dedicated to supporting and working with charities and social purpose organisations,” says Iain Smith, CAF Bank Relationship Director. “The way Magenta Living build safe and secure homes couldn’t be a better example of an organisation we are proud to support.
“The commitment to building new energy efficient homes is another shared aim, keeping costs down for Magenta Living’s customers, and furthering our shared commitment to a more sustainable future.”
“Both of us have had to invest in new processes to make the loan happen, but it has been worth it to be able to collaborate with a bank that has such a strong history of social value,” says Paul McGrady, Magenta Living’s Chief Finance Officer. “Similarly, our arrangement with DANSKE, reflects our ambitious decision to grow and provide more homes in Wirral.”
DANSKE operates primarily in Northern Ireland and is focused on expanding their activity across England and Wales.
Terri McCullagh, Relationship Director at Danske Bank welcomes the arrangement with Magenta Living: “Danske Bank has an established and growing presence in the social housing sector across the UK and is committed to supporting housing providers in delivering new affordable homes and investing in communities.
We are delighted to support Magenta Living with this financing package, which will help deliver its ambitious development programme and investment plans. This transaction is particularly significant for Danske Bank as our first housing association financing in the Liverpool City Region and reflects our continued commitment to supporting the social housing sector across Great Britain. We look forward to developing a long-term relationship with Magenta Living and supporting its future ambitions.”
The loans complete a 2026 £77m funding round for Magenta Living alongside £40m funding from Santander for new build, and £15m from Barclays for retrofitting existing housing stock. 85% of Magenta Living’s new properties will be on the Wirral, with the rest in other areas of the Liverpool City Region.
Paul McGrady explains, “We are moving quickly to put our capital to work on building new properties and refurbing homes. The success of our funding round is also a vote of confidence in Wirral, and we will be returning to market again to further fund our ambitious programme.”