A Northern social landlord has secured a £225m funding deal with three lenders that bosses say will help it to build new homes and improve its existing stock.
The deal, supported by Savills Financial Consultants, will see NatWest and Santander providing additional funding of £50m and £75m respectively, while new lender, Nationwide, will provide £100m. All three loans are term debt facilities running for 10 years each.
It follows the 26,000-home landlord’s announcement of a £284m loan package in April last year.
Manchester-based Great Places provides affordable homes in more than 30 local authority areas in the North West and South Yorkshire. In its 2024-27 corporate plan, the organisation has committed to building around 4,000 new affordable homes as well as investing in its current stock.
The funding also includes “sustainability-linked performance measures”, including a reduced interest rate if the organisation meets energy efficiency targets on new and existing homes.
Mike Gerrard, chief financial officer at Great Places, said: "We are delighted to have secured this significant funding package with NatWest, Santander and Nationwide.
“This investment is a testament to the confidence our lenders have in our vision and our commitment to providing high-quality, affordable homes.
“The additional funds will enable us to continue our ambitious development plans, improve our existing housing stock and make a real difference in the communities we serve.
“We are particularly pleased that these agreements include sustainability-linked performance measures, which align with our goals to enhance energy efficiency and sustainability across our portfolio."
Mike Roche, a director at Savills Financial Consultants, said: “Our team is proud to have continued our relationship with Great Places, supporting them to deliver for their customers by realising their business plan aims to 2027.
“The high quality of the work by Great Places has allowed us to swiftly agree these deals with existing lenders NatWest and Santander - and of course to build a strong relationship with new Great Places partner, Nationwide.”
Clive Williams, senior lending manager at Nationwide, said: “We’re delighted to welcome Great Places as a borrower to the Nationwide Group and to continue to build on our long-standing relationship with the social housing sector.
“We look forward to working with Great Places as they continue to invest in their existing stock and build new homes, which is closely aligned to both our sustainability targets and our social objective of being a beacon for mutual good.’’
Martin Skinner, director housing finance at NatWest, said: “NatWest continues to be a leading lender to the Ƶ social housing sector, and we are pleased at being able to work with Great Places Housing Group to help provide them with the resource to expand their ambitions and increase our own lending to the sector as demand continues to grow.
“This aligns to NatWest’s stated ambition to lend £7.5bn to the sector by December 2026.
“Great Places provides vital support for those in our communities who need it most. We are delighted to be able to help them continue this successful strategy.
“Not only does this enable the continued development of essential new, affordable housing and investment in existing stock, but it helps Great Places, and its portfolio, prepare for a sustainable future.”
Aradhna Lawson, senior relationship director at Santander Ƶ, said: “We are delighted to further expand our relationship with Great Places and to support with additional funding to both increase the provision of much needed quality affordable housing and facilitate investment in their existing homes. We look forward to continuing to work with the Great Places team.”
Devonshires provided legal advice to Great Places, while Nationwide was advised by Pinsent Mason and Santander and NatWest were advised by Addleshaw Goddard.
Alice Overton, a partner at Devonshires, said: “We are extremely pleased to have advised and supported Great Places once again in these important funding transactions, which include facilities with sustainability-linked features.
“This vital investment will enable Great Places to further its contribution to tackling the Ƶ’s housing crisis by delivering high-quality affordable homes to those most in need. It also supports the advancement of its long-term development strategy and addressing the growing demand for secure and accessible housing.”
