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Greater Manchester housing association secures £100m funding deal
Bolton at Home has secured a £100m funding package that will enable it to build 785 homes and complete its acquisition of Manchester neighbour Arcon Housing Group.
The 18,000-home housing association has secured £45m in new funding from the Royal Bank of Scotland, in addition to its existing £55m loan facility.
The new agreement includes funder consent for Arcon Housing Group to join Bolton at Home. It also removes some historic loan covenants linked to the stock transfer from Bolton Council in 2011, which formed Bolton at Home.
The money will also be used to finance the construction of 785 extra homes over the next three years, taking Bolton at Home’s total homes planned for the period to 960.
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Bolton at Home’s decision to acquire Arcon, which owns and manages 1,200 homes in the Greater Manchester area, was announced last month. Arcon’s homes are spread over a wider geographical area, giving Bolton at Home more scope to develop in the future.
Edward Mellor, executive director of finance at Bolton at Home, said that the additional funding was welcome.
“This deal will be a significant boost to our ambition to build much-needed affordable homes in the Greater Manchester area,” he said.
Mike Roche, director at Savills Financial Consultants, which brokered the financing deal, said: “The new funding package and necessary permission to allow Arcon to join the Bolton at Home group will allow the association to fully use its financial clout to deliver its growth strategy and deliver hundreds more affordable homes.”
