- UK Green Investment Bank and Equitix announce a commitment of £5m to sheltered housing boiler replacement project
- Deal marks GIB’s first investment in UK social housing sector
- More than 1,000 homes managed by Places for People to benefit from conversions
- Energy efficient new systems to deliver affordable, lower carbon heating
UK Green Investment Bank plc (GIB) and Equitix have today announced a commitment to fund the installation of energy efficient heating systems in sheltered housing complexes throughout England.
The Equitix managed fund Energy Saving Investments (ESI), in which GIB is a cornerstone investor, is investing £2.5m in the project.
This will mobilise an additional £2.5m of additional private sector capital from the Equitix Energy Efficiency Fund (EEEF).
The injection of capital – GIB’s first investment in the UK social housing sector – will see new, highly efficient heating systems fitted in up to 28 developments across the country. This includes a pilot scheme of seven completed installations in the North West.
With each complex consisting of between 38 and 50 individual homes, the complete programme will benefit 1,100 homes.
The highly efficient biomass and gas boiler systems will be fitted externally, to minimise disruption to residents, by Boxed Energy Limited, a joint venture between Places for People and Fontenergy Construction Services,.
Once operational, the boiler systems will be sold to Boxed Esco Services Limited which will then manage and maintain the equipment, selling the generated heat to Places for People (PfP), property owner and manager of the sites, under a 20-year energy performance contract.
The arrangement will provide PfP with cost-effective, energy efficient technology that substantially reduces energy consumption at each scheme while avoiding the significant capital costs and the operational burden associated with the installation.
Research from Energy Efficiency Partnership for Homes shows there are close to half a million supported housing units in the UK, many of which would benefit from the installation of more energy efficient heating systems. It is hoped that the structure of the arrangement can easily be replicated at other sites.
Bill Rogers, Managing Director, UK Green Investment Bank, said:
We are very pleased to be able to support Places for People’s programme to improve the energy efficiency of its housing stock. The project will bring cost savings, carbon savings and provide the social landlord with the practical benefits of outsourcing its energy arrangements. This is a model we’d like to see rolled out at scale across the rest of the UK.
Geoff Jackson, Chief Executive Director, Equitix, said:
Equitix has developed strong partnerships and a track record of investing into the social housing sector through its core infrastructure funds. We are very pleased to be building on our existing relationships by furthermore investing into high quality and environmentally beneficial projects within this sector through our energy efficiency funds. We are a long term partner and investor and understand the needs for Places for People and its customers so look forward to providing them more sustainable and cost effective solutions.
David Cowans, Chief Executive, Places for People, said:
We’re delighted to have received this investment from the UK Green Investment Bank and Equitix and to have formed a joint venture with Fontenergy Construction Services. This is great news for our customers who will benefit from the installation of these energy efficient boilers, saving money on their fuel bills. Places for People is at the forefront of bringing innovative solutions to the housing and regeneration sectors and we are particularly pleased that this is the first such investment by the Green investment Bank in the UK social housing sector.
Ross Nisbet, UK Green Investment Bank: firstname.lastname@example.org / 0330 123 2153
About the project
Total GIB share of investment: £2.5m
Total capital mobilised: £5m
Co-investors: Equitix Energy Efficiency Fund (EEEF)
Expected completion: end 2015
Operator: Boxed ESCO Services Ltd
Developer: Boxed Energy Limited
Notes to editors
About the UK Green Investment Bank
UK Green Investment Bank plc (GIB) was launched in November 2012. With £3.8 billion of funding from the UK Government, it is the first bank of its kind in the world. It is a “for profit” bank, whose mission is to accelerate the UK’s transition to a greener economy, and to create an enduring institution, operating independently of Government.
GIB is wholly owned by HM Government. The Company is not authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority. A wholly owned subsidiary UK Green Investment Bank Financial Services Limited, is authorised and regulated by the Financial Conduct Authority.
Equitix is a company established to deliver and manage infrastructure projects from bidding and closing through to construction and service provision. Its reputation is built upon strong relationships with its clients and partners, as well as a committed approach to every project in which they are involved and investment they make.
About Places for People
Places for People is one of the largest residential property development, management, regeneration and leisure companies operating across the UK. The Group owns and manages 148,000 homes and provides housing including homes for sale, market and affordable rent.
Uniquely the Group manages residential properties in all tenures and is one of the UK’s largest managers of private rented homes and leasehold properties. As a not-for-dividend organisation, the profits it makes are reinvested back into its core business of creating and maintaining sustainable places.