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House builder secures £165m deal backed by Homes England as it plans more affordable homes
Allison Homes has secured a £165m refinancing deal backed by Homes England and two lenders as it seeks to scale up its affordable housebuilding across the East of England, East Midlands and South West.
Allison Homes has secured a £165m refinancing deal backed by Homes England and two lenders as it seeks to scale up its affordable housebuilding across the East of England, East Midlands and South West #UKhousingThe house builder will get cash from the housing and regeneration agency’s Home Building Fund, which supports small and medium-sized developers through loans and investments.
The package agreed last month also includes funding from NatWest and HSBC, which agreed a five-year £120m refinancing deal with Allison Group back in 2022.
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Ian Trinder, chief financial officer of Allison Homes, said: “This is a very exciting moment for our business as it shows real confidence from strong funding partners in our long-term growth plans.
“Regional [house builders], like Allison Homes, play a crucial role in delivering the housing needed to meet local and national demand, while also investing in infrastructure, creating jobs and supporting the local economy.
“Importantly, this financial package means we can continue our ambitious growth trajectory, while focusing on what matters most – building high-quality homes, creating places people are proud to live in and being the [house builder] that people can trust.”
Simon Century, chief investment officer at Homes England, said: “Small and medium house builders play a vital role in building a diverse and resilient housing sector.
“Funding from Homes England will enable Allison Homes to expand its regional delivery, supporting the construction of more high-quality, affordable homes.
“This financing deal is a prime example of how the agency works collaboratively with both public and private partners to achieve our mission of building thriving communities that people can be proud to call home.”
Mark Pope, director at NatWest Real Estate Finance, said: “We are delighted to continue to be able to support Allison Homes with this facility to help them achieve their future growth plans, delivering much-needed additional housing.”
The Peterborough-based house builder owned by US investment firm Pimco is targeting building 2,000 homes per year by 2027.
Back in mid-2022, it launched a new division, Allison Partnerships, focused on building high-quality affordable homes with housing providers and build-to-rent companies.
That year also saw the house builder forward sell half the units in a 315-home scheme to Legal and General Affordable Homes, which used Homes England strategic partnership grant funding to invest in the site.
Through its partnerships branch, Allison Group has increased its affordable housebuilding numbers by more than a third.
In its annual review last August, the company revealed it has a 3,500-home pipeline with a combined expected development value of more than £1bn.
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