Singapore’s ARA Group has been awarded a £3bn affordable housing guarantee scheme in the UK.
The Ministry of Housing, Communities and Local Government has named the group’s ARA Venn subsidiary exclusive manager of the new scheme, which will support the delivery of around 17,000 homes.
Mark Ebbinghaus, chief executive of ARA Europe and chairman of ARA Venn, said: “ARA Venn will leverage its expertise as a specialist manager of European real estate private debt to support the UK government’s crucial role in the housing markets, and do our part to create more affordable housing in the UK.”
The scheme will provide registered providers £3bn of cost-effective long-term loans with tenors of up to 30 years, with an option to increase that figure to £6bn. ARA Venn will establish and manage the scheme, oversee origination, underwriting and loan management of the loans, as well as develop and manage a government guaranteed bond programme to fund them.
ARA Venn already manages the £3.5bn Private Rented Sector Guarantee Scheme on behalf of MHCLG.
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