Large North East landlord agrees new £54m loan amid £235m refinancing

Newcastle-based Karbon, which covers the North East of England and Yorkshire, has also restructured debt facilities with two of its existing lenders, Santander and Lloyds Bank.

A private placement with an undisclosed funder was also renegotiated. Details of these transactions were not disclosed, but totalled £235m.

Overall, Karbon said it will save around £3m in interest payments due to the refinancing exercise.

Scott Martin, executive director of resources at Karbon, said the new agreements will mean its spending on existing homes and commitment to build new affordable homes was “supported by our funding structures”.

In its last reported full year to the end of March 2024, the landlord’s completions jumped 22% to 644.

The group recorded a 61% fall in post-tax surplus, to £32.4m. However, the previous year its bottom line was boosted by a negative goodwill of £53.5m from acquisitions.

As a result of the new lending, Karbon has “over” £600m in debt facilities, a spokesperson told Inside Housing.  

The landlord currently has a G1/V1 rating with the Regulator of Social Housing.

Savills Financial Consultants advised on the deals, with legal advice for Karbon from Trowers and Hamlins.