Housing trust secures £130m for housebuilding
Published by Max Salsbury for 24dash.com in Housing and also in Finance
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Halton Housing Trust has secured £130 million in funding to help deliver around 700 new homes over the next few years.
The funds were raised through a combination of capital market and bank funding, arranged by Lloyds Bank, the Trust’s existing lender.
The separate deals included a private placement and a restructuring of its existing loan facility with the bank.
A £60m private placement was secured as a split structure between two investors over 35 years.
The announcement comes in the wake of the Trust's ‘Investment Partner Status’ accreditation from the Homes & Communities Agency, which means it can bid for development funding from the Agency and build new homes in its own right.
Halton's chief executive, Nick Atkin, said: “We are really pleased to have secured our new funding facility. It is noteworthy that we have been able to collectively deliver one of the shortest timescales from start to finish for such funding. This is also inside the challenging project timescales we set ourselves at the outset in September.
“This provides us with low priced long term funding which has surpassed our expectations. It enables us to strengthen our financial base and continue to invest in our existing homes as well as the development of around 700 much needed high quality new affordable homes over the next few years.
“As well as the obvious benefits for our customers, it also demonstrates that we are an organisation that can deliver complex projects within short timescales. This deal will also provide security for our employees as they will be working for an organisation with a fully resourced long term plan.”
Neil McGrath, the Trust's executive director of business services, said: “We are extremely grateful to our advisers and funders for assisting us with this transaction. We are absolutely delighted with the outcome of this deal.”
The Trust has been advised throughout by legal adviser DWF LLP and funding adviser Capita Asset Services.
Joanne Newling, relationship manager in Lloyds Bank Commercial Banking’s social housing team, said: “This is a flexible funding package which perfectly suits Halton Housing Trust’s needs as it looks to expand its portfolio of affordable homes in the borough. The private placement is a great example of the way providers are increasingly using finance from supportive investors on the debt capital markets alongside traditional bank loans to support their ongoing needs.”