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Housing association takes loan from Swedish bank
Cross Keys Homes has secured an additional £80m loan from Lloyds Bank Commercial Banking and Handelsbanken.
It said this meant all the funds needed were in place to complete its five-year development programme to build 2,000 new homes by 2021 in Peterborough and parts of the east of England.
The loan facility secured is a revolving credit facility that allows the landlord to draw down the money as required.
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Michael Heekin, executive director of finance at Cross Keys, said: “We are very happy to be working with these two great financial organisations. This funding is enabling us to strengthen our relationship with existing investor, Lloyds, which has been a strong supporter of our work for a number of years.
“We are also excited to have attracted a new investor, Handelsbanken, and we hope this will be the start of a really strong relationship with the local relationship bank.”
Inside Housing revealed Swedish bank Handelsbanken was joining the line-up of lenders to the sector in 2014. It has made deals with housing associations since including Orbit.
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Julia Munday, commercial banking relationship director at Lloyds Bank, called Cross Keys “a model of the modern housing association, delivering on ambitious development targets and providing high-quality affordable homes for thousands of people in Peterborough and the wider region”.
Cross Keys was originally a stock transfer landlord, taking more than 10,000 homes from Peterborough City Council in 2004.
It now owns some 11,000 properties and has expanded into Godmanchester, Milton Keynes, Bedford and Higham Ferrers.
The landlord did not reveal the split of funding between Lloyds and Handelsbanken
