ANDIUM Homes has “sufficient” funding to support the delivery of its contracted capital programme and “next immediate priorities”, according to the Treasury Minister – who has said the affordable housing provider “operates a robust business model”.
Senator Alan Maclean made the comments in a written response to questions from St Clement Deputy Karen Wilson regarding the financial sustainability of the States-owned company’s business plan as well as its available funding and projected capital expenditure during this political term.
Senator Maclean stated that forecast capital expenditure for Andium’s contracted programme and immediate priorities covering the financial years 2027 to 2030 amounted to £163 million.
This comprised £131 million of new build and major refurbishment costs, as well as £32 million of capitalised improvements to existing homes.
“A further £56 million is included within Andium’s next priorities over the same period, subject to the necessary viability assessments being satisfactorily completed,” the minister added.
Andium has drawn all of its housing development fund and private placement funding of £228 and £100 million respectively [see table pictured].
It still has £130 million left available via its revolving credit facility after drawing £170 million.
The majority (86%) of Andium’s borrowing is at fixed interest rates through contractual and hedging arrangements, with the latest forecast for interest costs in 2026 standing at £22 million.
Senator Maclean described the current level of funding as “sufficient to support Andium’s contracted capital programme and next immediate priorities”.
This, he noted, included the first phase of major refurbishments at Les Cinq Chenes and Clos des Samares.
“Any further capital projects would require an assessment of available resources to determine whether additional funding is needed,” Senator Maclean continued.
“The assessment would take into account Andium’s treasury management policy that requires a certain minimum level of available funds for risk management purposes.”
According to the affordable housing provider’s latest annual report, Andium recorded rental income of around £70 million in 2025.
Senator Maclean said: “Andium operates a robust business model with frequent reviews and updates of their 40-year financial modelling to ensure ongoing investment in existing and new affordable homes remains financially sustainable.
“The model is regularly stress tested to assess the impact of changes in the macroeconomic environment, capital programme and sales programme. It is updated at least annually as part of their strategic business plan process and their board strategy day.”
