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Recently merged landlord secures £254m funding package with five lenders
A housing association that recently merged to form a new 39,000-home group has agreed a £254m funding package with five lenders to support its investment in new and existing affordable homes.
Stonewater, which completed its takeover of Mount Green Housing Association in February, has agreed to the new revolving credit facilities (RCFs) which will run for five to 10 years.
The cash is being provided by existing funders Barclays, NatWest and Nationwide, as well as new partners ABN AMRO and HSBC.
Through these deals, Stonewater believes it has “optimised its financial covenant package with both new and existing funding, unlocking financial flexibility, bolstering liquidity and enhancing borrowing capability”.
The landlord will also use the funds to help deliver the three main objectives of its strategic plan.
These are to provide proactive and efficient customer-centred services, deliver quality homes and neighbourhoods, and maximise the value it provides to its customers and communities through environmental and social sustainability.
Anne Costain, chief financial officer at Stonewater, said: “Securing this new funding is not just about bolstering our financial position, it’s about fortifying our commitment to creating thriving communities through high-quality, affordable homes. This milestone marks a pivotal achievement in the delivery of our strategic plan for 2030.”
She explained that the RCFs “will enable us to plan and construct new affordable home developments, as well as enhance existing ones”.
Ms Costain added: “Cultivating robust relationships with banks is paramount in our mission to provide affordable housing solutions. We are deeply appreciative of the teams at Savills Financial Consultants for their invaluable financial guidance and to Devonshires for their legal expertise throughout this process.”
Savills Financial Consultants and law firm Devonshires supported Stonewater throughout the transaction.
George Flynn, director at Savills, said: “We were delighted to work with the Stonewater team on this important funding package across multiple lenders, which delivers enhanced capacity to support Stonewater’s future strategy.”
Following Stonewater’s recent merger, 1,600-home Mount Green became a subsidiary of the group.
At the time, the association said it hoped to leverage Mount Green’s 60-year history in the area, alongside plans to “provide customer-centred services as well as homes and neighbourhoods with a more locally focused offering”.
Mount Green is expected to benefit from the larger provider’s financial resources, treasury management and development opportunities.
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