You are viewing 1 of your 1 free articles
Housing association signs £289m funding deal
A medium-sized Surrey-based housing association has signed a £289m deal with three funders to support its development programme.
Raven Housing Trust has refinanced some of its existing loans and secured new funding as well to support plans to build 1,100 homes over the next five years.
The 6,600-home housing association has increased its available facilities by £75m, with new funding from Barclays, Lloyds Bank and the pension fund Legal & General (L&G).
These new funds included £50m of direct investment from L&G, which is a new funding partner for Raven, £18m in a revolving credit facility from Lloyds and £7m in a similar deal from Barclays.
READ MORE
After the new structure, it holds £122m in loans with Lloyds, including £30m it secured earlier this year from the bank’s new £500m fund for housing associations. With Barclays it now holds £117m of total facilities.
Steve Aleppo, interim finance director at Raven, said: “This is a landmark moment for Raven and a great endorsement of our plans to make a difference to the lives of our customers. In the past 15 years, Raven has built more than 1,000 new homes and invested £170m in existing homes.
“We are very happy that our existing funders, Barclays and Lloyds, have chosen to continue and extend their relationship with us. We are also delighted to have Legal & General on board as long-term investors who want to help fund our plan to build 1,100 homes in the next five years.”
Mike Roche, director at Savills Financial Consultants, which helped Raven secure the financial package, added: “Raven has ambitious plans to do more – this is exactly where we were able to help.
“Many housing providers have financial capacity to increase their development activities but understanding and then unlocking this can be tricky.”
This move from Raven mirrors its 2015 refinancing deal, which saw it restructure existing loans worth £165m with Barclays and Lloyds and take on £50m of new funding.
Steve Bolton, investment manager of corporate private credit for LGIM Real Assets, L&G’s asset manager, said: “We are pleased to have made this investment on behalf of our clients and supported Raven in this important funding exercise.
“The fundraise, of which LGIM Real Assets has provided £50m, will allow for the development of new homes, including affordable rented, shared ownership and market sale.”
Update: at 15.47 on 14.11.18 This story was updated with correct figures for Lloyds and Barclays.
