Kingdom to use Allia funding to build 116 new homes in Fife
Kingdom Housing Association Limited has been successful in securing £5.22 million of borrowing through the Allia bond for the development of 116 new homes for the people of Fife.
The loan is an unsecured loan backed by a bond which is at an attractive interest rate fixed for the full 10 year term of the loan. The bond was attractive to Kingdom Housing Association because of the rate but also because it had negligible fees and costs to the association.
The Allia bond is backed by Scottish Government funding which is in turn supported by the Financial Transactions Fund from the UK government. The loan will be used in conjunction with grant funding of £7.22m which has also been provided by Scottish Government for the development of 116 new homes for people in and around Fife.
Kingdom Housing Association will on lend £2.62m of the Allia loan to its subsidiary company Kingdom Initiatives Limited which is, for the first time, seeking to build its own homes. Kingdom Initiatives will build 16 homes for sale under the Partnership Support for Regeneration funding in Kincardine which seeks to make available home ownership to specific groups, e.g., first time buyers or families moving from social rented properties in to home ownership. Kingdom Initiatives will also develop a further 9 homes for mid market rent at the same location.
Kingdom Housing Association will build 2 homes in Kincardine for affordable rent plus a further 22 homes in Dunfermline, 49 homes in Cupar and 18 in Lower Largo. All the homes for rent and for sale are planned to be on site during 2016 and be ready for letting and sale in the first half of 2017.
Nick Pollard, Kingdom Housing Association director of finance, said: “We are delighted to be involved in this innovative funding which is being provided by Scottish Government using Financial Transaction Fund support and the Allia charitable bonds vehicle. It enables us to continue to deliver much needed homes across the Fife region meeting our planned objectives.”