Lloyds buys stake in United House

Lloyds TSB Development Capital, the private equity arm of Lloyds Banking Group, bought a minority shareholding in the company.

Royal Bank of Scotland is providing bank loans to help United House expand.

United House would not give the value of the stake bought by LDC or the size of the RBS loan.

The firm, which carries out both new build and refurbishment work in private and social housing schemes, plans to expand its work in social and private housing development and energy-saving refurbishment. The firm is majority owned by its management.

Group chief executive Jeffrey Adams said: ‘The partnership with LDC is a tremendous boost for our business and all the people working hard to make it a success. LDC’s backing will help the company’s continued growth and enable us not only to expand our capabilities and services, but also to work closely with local authorities and RSLs building more social and immediate housing, and to carry out energy-saving refurbishment works.

‘We will also be expanding the private residential development side of our business, building on our unrivalled expertise to extract maximum value from challenging inner city sites.’

Stephen Halbert has joined the group board as chairman and Kevan Leggett, managing director of LDC in the south, will also join the board.

The company’s results, which are due to be published in the next few weeks, will say that turnover has increased to £180 million in 2009 from £160 million in 2008 and the firm’ s unaudited profit before tax for 2009 was £15 million.

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