Genesis Housing Group secures £60 million funding from Lloyds TSB

Published by Jon Land for Genesis Housing Group Limited in Housing

Genesis Housing Group, one of the UK's largest providers of social housing, has just finalised a funding deal with Lloyds TSB Corporate Markets worth £60 million.

The funding package will assist the Group in their overall development programme, which includes 91 affordable new homes and also start-up business units at the Thomas Road site, near Limehouse Cut.  

Brendan Whitworth, Relationship Director at Lloyds TSB Corporate Markets, oversaw the team which completed the loan agreement with Genesis.

The finance package was swiftly approved and reflects the determination and commitment of both parties to finalise matters quickly in the current volatile market.

The loan from Lloyds TSB will contribute to a wider development programme which will address affordable housing needs in London.

The Thomas Road project, set for completion in mid 2009, will be a high-density, mixed-use canalside complex and will maximise the potential of a post-industrial brownfield site to create a landmark development which would act as a catalyst for the regeneration of the area.

It will provide a 50:50 private to social housing mix with an 80%/20% split between affordable rented and intermediate shared equity homes.

Brendan Whitworth, Relationship Director, Lloyds TSB Corporate Markets, said: "Genesis Housing Group has a vital role to play in delivering quality housing developments that strategically address the broadest needs of the residential market.

"We are delighted to be supporting such an organisation, especially in what is perceived as economically uncertain times.  We are keen to help housing associations like Genesis manage their existing business plans and develop their full potential for the future."

Paul McCurry, Head of Corporate Finance at Genesis Housing Group, said: "Genesis is very encouraged that Lloyds TSB continues to support the Group's strategy in such a positive way, demonstrating third party confidence in the robustness of our business model."

In April 2008 Genesis Housing Group completed additional loan facilities of £160m through GenFinance, the Group's treasury company, to support the Group's development pipeline. These additional facilities are with three relationship banks and are on similar margins and terms to the existing facilities.

Genesis continues to have strong relationships with its core lenders and will seek opportunities to diversify its funding sources on competitive terms.  GenFinance currently has access to facilities totalling £1.1 billion.