Havebury secures £270m funding package
Havebury Housing Partnership has secured a refinancing and new funding package worth £270 million, which will fund the 6,400-home housing association’s growth ambitions.
The Suffolk-based housing provider worked with Savills Financial Consultants to complete the funding deals, which included a new £75 million institutional investment provided by Macquarie Infrastructure debt Investment Solutions (MIDIS) – the first institutional investor to back the housing association’s business.
The £270 million package also includes £60 million in revolving credit facilities from another new funder, Lloyds Bank, as well as £135 million of restructured facilities with Barclays and RBS.
The funding will increase Havebury Housing Partnership’s business capacity, enabling it to boost its development programme to around 1,400 new homes over the next five years, over 1,200 of which will be social and affordable properties.
Overall, the deal has resulted in £60 million of increased funding, with significant improvements in terms of the cost of capital for Havebury, which operates across the East of England.
Marie McCleary, Director of Resources at Havebury Housing Partnership, said:
‘Securing the refinancing and new funding deal will make a huge difference to Havebury Housing Partnership. We now operate in ten local authorities and the deal will enable us to continue with our business plan aims to develop 1,400 much-needed homes across the East of England over the next five years.’
Terry Frain, a director at Savills Financial Consultants, said:
‘This transaction represents a sizeable increase in the development aspirations of Havebury Housing Partnership. Savills Financial Consultants is delighted to have supported our client through the process, which included a whole market approach for additional funding, and also a root and branch review of existing funding to drive through the most efficient and operationally flexible funding, balanced with the needs of the long-term institutional lenders.
‘This is Havebury Housing Partnership’s first entry into the institutional investment market with £75 million of long-dated funding secured. All-in funding costs across the whole package have resulted in significant improvements in the cost of capital for the benefit of the business plan.’
Claire Simpson, relationship director at Lloyds Bank Commercial Banking, said:
‘The revolving credit facility marks the start of a new relationship with Havebury Housing Partnership, giving it the freedom to pursue its long-term growth plans which will have an important role to play in helping to ensure the East of England has enough affordable housing.
‘As one of the biggest lenders to the UK social housing sector, we’re committed to helping Britain prosper by supporting organisations like this, which play such a crucial role in making the UK housing market more accessible.’
Nathalie Clarke, relationship director, Barclays Corporate Banking, said:
‘We have a strong and longstanding relationship with Havebury Housing Partnership, and for Barclays to support the next stage of their evolution through restructured facilities was an obvious fit and underlines our ongoing commitment to the social housing sector in the UK.’
Dean Holleyman, housing finance director for RBS, said:
‘RBS is pleased to back The Havebury Housing Partnership’s growth ambitions with this new funding package. RBS is committed to supporting the increase and diversification of the UK’s housing provision agenda and this deal will help a longstanding customer provide much-needed homes in the East of England.’
About Havebury Housing Partnership
Havebury Housing Partnership is dedicated to the provision of high-quality affordable homes to help meet local and national housing demand. Operating across ten local authorities, Havebury owns and manages over 6,000 houses and flats, and since 2002 have built over 1,000 new homes across the East of England.
Savills Financial Consultants advises UK housing providers on funding structures and approaches. Its areas of expertise include: bank funding, public debt capital markets, US private placements, local authority lending and UK institutional investment
In the past year, Savills Financial Consultants has advised housing providers on deals worth more than £1.5 billion
Savills Financial Consultants is part of global property advisor Savills