Tirion funds refinance two major, £100 million, residential led, urban regeneration projects in Wales
The funding was put in place between Tirion Investments (a subsidiary of Tirion) and M&G Investments and is the fourth phase in a long-term refinancing for The Mill, Canton, and Royal Victoria Court, Newport. The aim of both projects is to deliver much needed affordable homes to Cardiff and Newport using former industrial brownfield sites, unoccupied for 20 years. In the case of The Mill, the development has transformed a derelict land, where a paper mill once stood, into a sustainable, residential neighbourhood.
The Mill in Cardiff and Royal Victoria Court in Newport are being delivered by Tirion, a community development organisation in partnership with Welsh Ministers and Principality Building Society, in order to provide more affordable homes to people in Wales by delivering high-quality residential neighbourhoods in towns and cities and, in doing so, building strong communities where residents can thrive.
Tirion’s advisors for this transaction were: Centrus (funding), Trowers & Hamlins, Morgan LaRoche and Hugh James (legals) and the valuation advisor was Savills.
Chad Patel, Finance Director at Tirion commented: “It is fantastic to secure another tranche of long-term institutional funds to ensure that we can continue to invest in our existing development projects and those communities as a whole. The new funds see the total investment raised to £60m, further demonstrating the success of Tirion model in developing much needed high quality, affordable housing without using Social Housing Grant.”
Eleanor James, partner in the Trowers’ Banking and Finance team, added:
“We are delighted to have played a role in securing such an excellent result for Tirion Group on its fourth phase of funding from M&G. The finance provided will further develop affordable homes at The Mill, Canton and the Royal Victoria Court site in Newport and will help build stronger, more sustainable communities in Wales. Trowers has been working closely with Tirion from inception over 10 years ago with banking, tax, structuring, governance, real estate and other legal advice. It has been a real pleasure working with Tirion over the years and we look forward to advising them on future projects.”
Alongside ongoing projects in Cardiff and Newport, Tirion is currently exploring the potential to unlock other stalled regeneration projects across Wales, with a further site based in Rhondda Cynon Taf set to begin construction in 2024.