To be compliant with the UK government’s net zero target by 2050, the association had forecast expenditure to ensure its properties achieve an Energy Performance Certificate (EPC) rating of C or better by the end of 2030. In addition, UK government regulation for health and safety standards in housing association properties has been increasing under consumer regulatory standards.1
MAM Private Credit engaged with the association over the work required to both improve its EPC ratings and meet the standards set for fire safety. To achieve both, the older buildings in its portfolio needed significant investment above what was previously forecast, so the association developed a 10-year building improvement plan to raise housing standards for its residents.
To provide the association the financial flexibility it needed to undertake the plan, adjustments to its debt covenants were required.
Before agreeing to these adjustments, MAM Private Credit assessed the association’s proposed plan and the frameworks in place to ensure its successful delivery. This review highlighted opportunities to strengthen the association’s operational governance and the controls around the delivery of the 10-year improvement plan.
We are pleased to support the association’s plan to invest in its properties to improve safety and energy efficiency to meet current standards and provide higher quality living environments for its tenants.”
Managing Director, Private Credit
Macquarie Asset Management