Lloyds Bank arranges £45 million financing to Alliance Homes Group
We’re pleased to announce that we have received a massive boost to our ambitious plans of building 2,000 new homes in the South West. This is thanks to a financing deal from Lloyds Bank Commercial Banking which has secured us funding, totaling £45 million from the bank.
The committed funding is available for at least five years, with an option to extend the facility for a further two years. It is anticipated that the £45 million revolving credit facility will be fully drawn within five years. The facility comprises of a single five-year bullet tranche.
The funding will support us to grow the provision of much needed housing in an area that continues to suffer from a housing shortage and increasing rents. We aim to develop a further 2,000 homes predominantly in North Somerset, over the next 10 years.
Alongside this funding, it is hoped increasing government grants to the sector will further support the deliverability of new housing.
Katrina Michael, Chief Finance Officer at Alliance Homes, said: “We are delighted to receive this funding package from Lloyds Bank, which will enable us to work towards our goal of creating more homes.”
Chris Hudson, Associate Director at Lloyds Bank Commercial Banking, said: “Working with ambitious social housing providers is a key part of our plan to help Britain prosper, where we have committed to provide £5.5billion of new funding to the sector by 2020. Alliance Homes’ Plan A strategy is making a real difference to the communities it serves, and we’re proud to be able back their plans to deliver more new homes in the West of England.”
Alliance Homes has already made inroads in its ambitious plan to bring new homes to an area that continues to suffer from housing shortages and increasing rents. In 2018/19, 134 new homes were built.