The housing association Optivo has secured a £100m funding package from Lloyds to help deliver plans to build 1,500 homes each year from 2020.
Optivo, which owns and manages more than 44,000 homes in the South East and the Midlands, announced the deal with the bank - which is a major lender to the housing association sector - today.
The association aims to build 85% affordable homes, of which 60% would be below market rent and 40% shared ownership.
Paul Hackett, Chief Executive of Optivo, said: “The shortage of affordable housing is endemic across the UK, so this funding package is an important milestone for us as we look to turbocharge our expansion plans and grow our footprint, ensuring people in our communities have access to high-quality, affordable homes.
“We have enjoyed a long-term relationship with the team at Lloyds Bank, which supported our merger earlier this year“, he added.
Optivo was formed in May with the support of Lloyds Bank following the merger of Amicus Horizon and Viridan Housing.
Lloyds Bank’s funding for the association is part of their pledge to provide or arrange £500m of funding to the social housing sector during 2017 through its Helping Britain Prosper commitment.
Richard Hughes, relationship director at Lloyds Bank Commercial Banking, said: “We’re confident Optivo will continue to be one of the most innovative developers of affordable housing across London, the South East and Midlands.
As one of the biggest lenders to the UK social housing sector, we’re committed to helping Britain prosper by supporting organisations like Optivo, which play such a crucial role in making the UK housing market more accessible.”