Pensions - Articles - Social Housing-Opportunity for Liability-Matching Investment

 Redington’s Spring/Summer Collection 2011, a whitepaper on pension investment in alternative asset classes.

  

 The 2010 Spring Collection introduced the idea of social housing as an example of a ‘Flight Plan Consistent Asset’ (“FPCA”), offering long-dated inflation-linked returns for pension funds. This instalment of the 2011 Spring/Summer Collection builds upon this note, exploring new financing options available for social housing investment and the risk/reward profile associated with each.
  

 • Traditional Model: Prior to the 2008 financial crisis, Housing Associations relied upon a
 mixture of government grants and bank debt to finance projects. The financial landscape has changed with neither of these traditional sources able to provide the same level of support as previously.

  

 • New Models: Housing Associations are now exploring new opportunities to fund the
 continued demand for social housing. The paper covers three of these financing models- Issuance of long-dated index-linked debt; Sale and leaseback arrangements; Development partnerships.

  

 A final instalment of the Spring/Summer Collection 2011 to follow will cover renewable energy, a further example of FPCA.

 For more information or to speak to Robert Gardner, co-CEO of Redington, please contact me on 0207 592 7930.
  

  

 To download the complete document please click on the link below