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Khan loans developer £50m to help building accelerate after crisis

London mayor Sadiq Khan has agreed to loan a private developer £50m to help it accelerate building during and after the coronavirus pandemic.

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Picture: Getty
Picture: Getty
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@SadiqKhan loans developer £50m to help building accelerate post-crisis #ukhousing

“We are ensuring that 'poor doors' are confined to history,” says @tomcopley as the GLA agrees £50m loan with developer #ukhousing

@mountanvil secures first-of-its-kind £50m loan from @MayorofLondon #ukhousing

The deal with Mount Anvil is the first of its kind between the Greater London Authority (GLA)’s landowning company, GLA Land and Property, and a private house builder.

Mount Anvil has promised to speed up delivery of the next 2,000 homes in its pipeline and rapidly expand its land buying programme using the funding.

The firm has plans to build 10,000 homes in the capital by 2030 – including 1,400 by the end of March 2025.

At least 50% of these 1,400 homes will be for affordable tenures, the GLA said.

Tom Copley, deputy London mayor for housing, said: “In these uncertain times I am delighted to be able to confirm this new loan facility for Mount Anvil, one of London’s most dynamic property developers.

“It is vital that London emerges from the lockdown with a renewed focus on delivering the social and other genuinely affordable homes our city so desperately needs.

“Funding arrangements such as this will ensure that our private sector partners can accelerate their plans for the next decade and, crucially, increase delivery of much-needed affordable homes.”


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The loan agreement includes a new clause to uphold the mayor’s principles on equality and diversity, City Hall said, which will feature in all GLA Land and Property funding contracts in future.

Mount Anvil has previously committed never to build separate entrances for residents of market and affordable homes in its developments – dubbed “poor doors”.

“We are ensuring that ‘poor doors’ are confined to history and helping to build a fairer and more equal city for all Londoners,” Mr Copley added.

The developer will draw down the commercial loan in stages starting this month, with the money repaid on a project-by-project basis following sales completions.

It is set to be repaid in full by 28 February 2030, unless GLA Land and Property agrees otherwise.

Marcus Bate, investment director at Mount Anvil, said: “This partnership extends beyond the scope of a traditional investment partnership, establishing an alignment of cultural values between Mount Anvil and GLA Land and Property, coupled with a shared vision for better quality affordable housing in London.

“The funding provides us with huge capacity to invest in the best available new development sites in London.

“We’re putting all our eggs in the London basket, and will be watching that basket very closely – supporting our exceptional people as they design, plan and build some of the best homes in the capital.”

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