A North East housing association has pledged to increase its investment plans after striking a deal for £200m of fresh finance.
Karbon Homes, has increased its loan book by agreeing £200m of new facilities with three lenders, to support its ambitious investment plans. The organisation, formed in 2017, manages 34,000 affordable homes for people across the North East and Yorkshire, amid company aims to give customers the strong foundations they need to get on with life.
Now the organisation has agreed loan facilities with existing lender Santander and new lenders HSBC and Nationwide, which it intends to use to develop a pipeline of new homes while also investing in its existing properties.
READ MORE: {}
Scott Martin, executive director of resources at Karbon Homes, said: “A chronic shortage of affordable housing in the North East and Yorkshire, paired with a need to ensure existing affordable homes are of the highest quality and our communities are supported, means investment in our sector has never been more important.
"We’re pleased to be working with HSBC and Nationwide as new funding partners, and are grateful for the continued support of Santander, which has been a key financing partner for a number of years.
“This new liquidity will help ensure we have the financial capacity to deliver our strategy, so we can continue to build strong foundations for life for more people across the North.”
Karbon was supported by Savills Financial Consultants and Trowers and Hamlins LLP.
David Whelan, relationship director, social housing at HSBC 海角视频, said: “HSBC 海角视频 are delighted to form a new lending relationship with Karbon Homes and our new facility will help support the development of new homes alongside important investment in existing homes for the benefit of its customers. Karbon is a key name we have been tracking for several years, and this facility expands our growing sector presence and support in the North of England.”
Most Read
Mark Evans, Nationwide social housing team, said: “As one of the largest lenders to the 海角视频`s social housing sector, we are proud to welcome Karbon Homes as a new customer. With the close alignment of our mutual social purpose, we are pleased to support Karbon Homes in its delivery of affordable, safe, and sustainable housing to some of the most vulnerable in our society.”
The move by Karbon Homes comes a month after Newcastle housing provider Home Group boosted its own liquidity by £260m, following renegotiations with lenders and one new source of funds.
The £490m-turnover housing association reached agreements on facilities from existing lenders Lloyds, HSBC, and Nationwide - increasing to £250m, £175m and £140m respectively - and secured a new £110m facility with Barclays.
The Newcastle-based organisation, which invested £187m to build new homes in 2023/24, said the facilities would allow it to continue developing properties for affordable rent, social rent and affordable home ownership.