Midlands landlord signs funding deals worth £200m

News21.12.237.00 AM by James Riding

A Midlands landlord has signed funding deals with three banks worth a total of £200m.

Houses in Kings Road, Kings Heath, Birmingham (picture: Midland Heart)

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A Midlands landlord has signed funding deals with three banks worth a total of £200m #UKhousing

Birmingham-based Midland Heart secured revolving credit facilities with HSBC, Lloyds Bank and Nationwide.

HSBC has provided £100m over five years, Lloyds Bank £50m over five years, and Nationwide £50m over 10 years.

The 35,000-home landlord said it would use the funding to modernise existing properties, as well as build and buy affordable homes in the region.

Joe Reeves, executive director of finance and growth at Midland Heart, said: “The relationship we have with our lenders and investors is crucial to the implementation of our retrofit strategy in the homes we rent and the continuation of our ambitious programme to build more quality, affordable homes across the region.

“We’re thrilled to have secured these credit agreements, which recognise the value of affordable housing as an investment and reaffirm Midland Heart’s position as a stable and financially viable organisation that investors feel confident doing business with.”

George Flynn, director at Savills Financial Consultants, said: “Following a highly competitive tender process and subsequent negotiations, Midland Heart was able to secure a fantastic result which provides additional liquidity and introduces a new funder to the organisation.”

Midland Heart recorded a 27% slump in annual surplus in 2022-23, partly due to higher operating and finance costs.

The group spent £97.5m on new homes and £20.7m in improving its current stock.

John Edwards, outgoing chair of Midland Heart, said the landlord was still on track to hit its goal to build and acquire 4,000 homes by 2025, despite a fall in yearly completions.