SWAN Group, the affordable housing developer, has secured a funding package worth £50 million to drive plans to build more than 3,000 homes in Scotland.

The five-year equity facility was provided by an institutional funder who is “focused on backing real estate businesses that occupy niche positions in scalable markets”, the Glasgow-headquartered firm said.

While the firm develops homes across the UK, this capital will help accelerate the development of over 3,000 affordable homes in Scotland specifically, with an estimated Gross Development Value in excess of £420m.

Edinburgh and London-based Conduit Finance aided the move, Swan said.

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Conduit helped the business transition to a more streamlined capital structure, and sourced the investment partner, developed the investment pack and managed the transaction deliverables.

Phil McGinlay, Swan Group’s managing director, said: “Over 1.2m UK families languish on waiting lists for affordable housing at the same time as the trend for the construction of appropriate accommodation is declining.

“Securing this new growth capital facility will allow us to support our partners in housing these families faster.

“The funding will also help us deliver our strategic growth objectives more quickly. It has been a pleasure working with Jamie and Jason on this transaction and we look forward to partnering with Conduit Finance in the future.”

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Jamie Davidson, managing director at Conduit Finance, said it “helped identify the most efficient capital model, and provider, for delivering the Swan Group growth plan”.

He also said: “Being able to assist a business who has such a position impact on society is gratifying. We look forward to supporting Phil and his team during this next period of growth.” Swan both develops and manages affordable and private real estate.