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Stonewater agrees £100m funding package with two major banks
Stonewater has agreed a £100m funding package with two major banks to support the delivery of its 2030 corporate plan.
Stonewater has agreed a £100m funding package with two major banks to support the delivery of its 2030 corporate plan #UKhousingThe 40,000-home housing association has confirmed a £50m, seven-year, fixed-rate loan with The Co-Operative Bank and a £50m, eight-year, variable-rate loan with Santander.
Both are longstanding existing lenders to Stonewater, and the funds will support multiple developments across England, as well as boosting retrofit and energy performance certificate works for its existing homes.
The next phase of Stonewater’s retrofit programme aims to to improve the energy efficiency of 1,600 homes across Swindon, Wiltshire, Herefordshire, Dorset, Surrey and Sussex.
This latest deal comes after the large landlord secured a £75m loan with the Royal Bank of Scotland in July.
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Anne Costain, chief finance officer at Stonewater, said: “Securing new funding from our long-standing lending partners allows us to build more of the affordable, high-quality homes people need, right across the country.
“It will also support vital retrofit and energy efficiency works on our existing homes, helping us to improve living standards for Stonewater’s customers, lower energy bills and reduce our carbon emissions.
“We are committed to supporting the government’s 1.5 million homes target and Decent Homes Standard. Through this increased financial capacity, we can provide more homes, better homes and play our part in tackling the ongoing housing crisis.
“Both lenders were exceptional in their collaboration and delivery of the ask. We are looking forward to our continued relationships with them.”
Santander’s new finance agreement allows for sustainability-linked performance measures to be added, which the landlord aims to do before the end of the year.
Adam Bartley, relationship director at Santander UK, said: “We are pleased to be supporting Stonewater as it takes the next step in its retrofitting journey.
“Stonewater continues to position itself as one of the leading social housing providers and we are delighted to be working with the team to deliver improved energy efficiency in hundreds of homes across the UK.”
John Rangecroft, commercial banking manager at The Co-operative Bank, said: “In an era when more than 1 million households in England are waiting for social homes, and thousands of families are living in temporary accommodation, the funding we’re announcing today is a real step towards helping more people into safe, affordable homes.
“For people and families facing down a cost of living crisis, energy bills are a significant concern. Some of this funding will also help improve energy efficiency across thousands more homes and reduce bills and money worries in the long term.
“Our specialist social housing team is committed to helping partners like Stonewater turn crisis into opportunity – and we’re so proud to be working together to build and develop the homes many so urgently need.”
The team at Savills Financial Consultants consulted on the deal, alongside Devonshires, which gave legal advice.
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