Middlesbrough-based housing association Thirteen Housing Group has issued a private placement to a group of UK and US institutional investors, securing a £100m injection of new capital.

Thirteen owns and manages 34,000 homes from an area spanning North Tyneside to York, with the majority based in the Tees Valley. The association employs 1,500 people and provides services for more than 70,000 customers.

The £100m private placement is spread over a number of tranches with 25-year to 35-year maturities and a weighted average cost of funds of 2.86 per cent.

“This is fantastic news for Thirteen as it means we’ve secured long term funding at a very low, fixed cost that will help us to realise our growth and development ambitions,” said Heather Ashton, executive director of resources.

“We’re really pleased with the feedback we received from investors throughout the process.  It was extremely positive, and their confidence in Thirteen’s management team and governance has resulted in a fantastic outcome for our first private placement.”

Headquartered in Middlesbrough, Thirteen has pledged to invest more than £1bn into improving homes for existing customers, as well as building new homes, making improvements to neighbourhoods and providing support services.

Ian Wardle, chief executive, added: “By broadening our funding base in this way, we can continue to invest in existing customers as well as building the new homes that future customers want and need.”