The Wirral-based housing provider has used the loan to acquire 50 homes from Northstone within 10 days of approval.
Magenta Living has secured the £40m facility from Santander to support its ambitions of building 1,300 new homes by 2030. The loan is part of a wider £77m of funding Magenta is hoping to raise that will fund both retrofits and new-build development.
The financing has been used to pay the deposit on 50 homes from Northstone's Merse development in Bromborough.
After going to the market, Magenta Living said it had received offers for financing of around £300m, five times more than it was which it said is “a sign of the market’s confidence” in the organisation.
Paul McGrady, Magenta Living’s chief finance officer, said:
“By raising the finance now, we can move quicker with our building programme and say ‘yes’ to opportunities.
“That’s how we were able to sign an agreement for 50 homes from leading housebuilder Northstone within 10 days of the loan agreement for homes that will be ready in September.”
Deena Yadav, relationship director for social housing at Santander Corporate and Commercial Banking, said:
“We are pleased to have supported Magenta Living with £40m of financing, enabling the organisation to move quickly on its plans to invest in new homes.
“Magenta Living has a clear vision for delivering high-quality, sustainable housing, and we’re proud to support its continued growth and investment in communities across the Liverpool City Region. This transaction demonstrates Santander’s ongoing commitment to supporting the social housing sector and the delivery of much-needed homes.”