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Grand Union Housing Group agrees new and restructured funding deals worth £237m
Grand Union Housing Group (GUHG) has secured funding deals worth £237m as part of its plan to develop nearly 2,000 new homes.
The 12,000-home landlord, which operates across Bedfordshire, Buckinghamshire, Northamptonshire and Hertfordshire, has secured a £30m revolving credit facility and £207m in restructured facilities to support its plan.
It secured the £30m revolving credit facility with Barclays bank.
The £207m of restructured facilities was done with Santander and NatWest despite economic pressures caused by coronavirus.
The group said the deals provide the association with improved gearing covenants and on-lending capacity, with maturities ranging between three and 10 years.
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Chris Bellamy, director of finance and treasury at GUHG, said: “Despite the ongoing external economic pressures, we have managed to further strengthen our immediate liquidity position and also future-proof the group’s medium-term treasury activities.
“This will ensure the support of our ambitious growth targets and opens the door for more collaborative working with our partners on new development opportunities.”
GUHG said the funding will allow it to build 1,900 new homes over the next five years.
In 2018, the group agreed a £300m refinancing package as it merged its three constituent associations.
Terry Frain, director at consultancy Savills Financial Consultants, said: “This is the first of a two-stage approach in the latest restructuring of Grand Union’s corporate financing, which has focused on its short to medium-term banking facilities.
“We look forward to working through stage two, which will focus on the securing of long-term finance through the debt capital markets over the next 12 months.”
