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Vivid agrees £100m ‘flexible’ loan facility with aggregator
A large South of England landlord has agreed a £100m loan through an aggregator, which is being described as a “new form” of flexible facility.
Vivid, which manages around 33,000 homes, will have three years to draw down the loan, which is being used to fund its development programme.
Under the deal with aggregator Blend, Vivid can choose when it wants to lock in an interest rate and can defer the funding until later.
The term of loan will be agreed when Vivid decides to draw down the funds, a Blend spokesperson told Inside Housing.
Vivid is aiming to deliver 17,000 new homes by 2030 and late last year ramped up its push on modular with a major deal with Legal & General.
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Duncan Brown, chief financial officer at Vivid, said: “In an unpredictable market, we’re keen to have a range of options for accessing liquidity when we need it. The flexibility this new facility offers is a great addition to our portfolio.”
The new arrangement with Blend, a subsidiary of The Housing Finance Corporation (THFC), comes just two months after Vivid secured a £50m green loan as part of a £110m refinancing deal.
Arun Poobalasingam, head of relationship management and business development at THFC, said: “We are delighted to agree this loan facility with Vivid.
“We believe that the flexibility we can offer associations makes THFC attractive in the current economic environment, where borrowers need to move quickly to take advantage of potential long-term funding opportunities.”
Vivid has seen a number of changes to its executive team this year. In January, development director Mike Shepherd left to join Man GPM, the private markets investment business of investment giant Man Group.
Around the same time, Vivid announced it had made two appointments to boost its top team.
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