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Home Counties landlord agrees £300m refinancing package ahead of group restructure

Grand Union Housing Group has restructured its entire £300m loan package ahead of the collapse of its group structure into a single organisation.

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Home Counties landlord agrees £300m refinancing package ahead of group restructure #ukhousing

As part of the restructure, Grand Union has replaced a £150m three-bank club deal with an individual bilateral arrangement with each lender.

The 12,000-home association now has bilateral funding arrangements with Santander (£87m), Natwest (£58m), Newcastle Building Society (£21.5m) and Nationwide (£5.1m). The Santander funding includes a newly arranged £25m facility.

The new deals come ahead of the amalgamation of Grand Union’s three constituent associations: Aragon Housing Association, Rockingham Forest Housing Association and South Northants Homes. The merger will “drive operational synergies across the business”, according to Grand Union.

The Home Counties-based landlord’s funding suite also includes a £115m bond issued in 2013.

Grand Union has a 300-homes-a-year development programme, through which it aims to build 1,500 homes by 2020.

 

Anna Simpson, director of finance at Grand Union, said: “It is of crucial importance to us that, while we seek to improve the service we offer our customers by becoming more efficient, we continue with our development programme across Bedfordshire, Northampton, Buckinghamshire and the surrounding counties.”

Terry Frain, director at Savills Financial Consultants, which advised on the deal, said: “We are proud of our long-standing relationship with the team at Grand Union. The knowledge we have built up has allowed us to ensure a smooth transition to the new funding package and replace the previous syndicate arrangement. It is very pleasing to see Grand Union’s housebuilding programme continuing for many years to come.”

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