Ambitious plans by a Midlands-based housing association to deliver 2,000 new homes by 2023 have received a substantial boost with the announcement of a significant finance deal.
Housing Plus Group has extended its existing Revolving Credit Facility (RCF) from £15m to £45m for a further three years, bringing the total amount of finance available through all forms of lending from Barclays Bank to £70m.
The new facility follows last year’s merger with Stafford and Rural Homes and represents a huge vote of confidence in the financial stability of the expanded Group.
Phil Ingle, Executive Director – Finance, at Housing Plus Group, explained: “This latest arrangement reflects the strong finances of the group, although we are grateful to Barclays for delivering on this financial package during difficult and uncertain times for the economy due to the coronavirus pandemic.
“As well as providing us significant financial flexibility and liquidity in the medium-term, the arrangement will help us to deliver on our merger objectives, including a pledge to begin building much needed new homes in Staffordshire and Shropshire for rent and shared ownership.”
The group already manages 18,000 homes across the two counties as well as providing a wide range of care services. With more than 800 staff it is also a leading employer and is driven by a set of clear values that put homes, lives and communities at the heart of its operations.
“The deal comes as we also press ahead with other key objectives, including the delivery of a third more hours of care and support and the creation of 100 new apprenticeships in the Group and its supply chain within the next five years,” Mr Ingle said.
The latest RCF from Barclays was secured with the help of Savills Financial Consultants (SFC) and Anthony Collins Solicitors.
James Chivers, Relationship Director, Barclays Public Sector Team, commented: “Barclays is committed to using our industry expertise within the sector to support such propositions. By really understanding the sector, Barclays has been able to continue supporting Housing Plus Group through the provision of a new revolving credit facility and looks forward to working closely to help this ambitious housing association achieve its objectives.”
Sean Escott, Director at SFC, added: “Housing Plus has secured increased liquidity in difficult times and has been able to do so because of its underlying financial strength and its ability to build strong relationships with key partners.”
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