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Yorkshire landlord secures £50m in first deal with Dutch bank
Bradford-based Incommunities has secured £50m in funding in its first agreement with a major Dutch bank.
The 23,000-home landlord has agreed a five-year revolving credit facility with ABN AMRO. The interest rate was not disclosed.
Incommunities, which has a G2/V1 rating with regulator, said the funds will be used to improve its existing homes and help build around 1,500 new homes over the next five years.
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The landlord recorded a post-tax surplus of just £941,000 on turnover of £104.4m in its last reported full year to the end of March 2023. The group’s operating costs rose to £98m.
John Wright, executive director of finance at Incommunities, said: “Both the competitive pricing and flexibility within this new funding will enable us to further invest in our existing homes, delivering on our commitment to our customers.”
The group, which operates homes across Yorkshire, was downgraded to a G2 in 2020 over incorrect reporting to its lenders. It was also found to have breached the Rent Standard in 2022.
In March, S&P kept its A rating of Incommunities, but also retained its negative outlook on the group.
The credit rating agency flagged risks around its “increasing investments in existing stock, especially in relation to fire and building safety”.
ABN Amro has been upping its lending to the sector, providing funding for Clarion, Platform, Bromford, Vivid and Orbit in the past 18 months.
Rutilio Merién, sat ABN AMRO, said: “ABN AMRO bank is pleased to further support the social housing sector, and looks forward to building a strong and long-term relationship with Incommunities.”
Incommunities was advised by law firm Devonshires and Chatham Financial.
