ForHousing has successfully completed a major refinancing exercise with NatWest and Barclays, strengthening its financial position and enabling increased investment in new and existing homes.
The refinancing totals £215 million, comprising £75 million in revolving credit facilities and £140 million in term debt facilities, increasing ForHousing’s total borrowing to £321 million.
As part of the deals, ForHousing, which owns 19,000 homes across the North West, has renegotiated loan covenants to enhance long-term financial capacity.
The deals will also improve medium-term liquidity, safeguard long-term viability, and support the delivery of The ForHousing Strategy.
The updated loan facilities will provide financial capacity for:
- Increased investment in existing homes, following an updated stock condition survey programme – ensuring ForHousing can act on the information in the surveys and speed up its programme to improve tenants’ homes.
- The delivery of 1,100 much-needed new homes for social rent over the next five years.
Mark Bradshaw, Executive Director of Finance at ForHousing, said:
“The additional funding and revised loan covenants give us the capacity to invest more in our existing homes and deliver 1,100 new homes over the next four years. It will ensure the continued delivery of the ForHousing Strategy, which has been created with tenants and stakeholders to ensure we are investing where it matters to our communities the most – and support our mission to provide safe, well-maintained homes and deliver customer-focused, equitable and efficient services.”
Martin Skinner, Relationship Manager at NatWest, said:
“I am delighted that NatWest has continued its long relationship with ForHousing through its support for this important funding exercise. I am equally pleased that NatWest deployed our recently launched Social Loan product, recognising ForHousing’s ambitions to develop much needed Social Rent properties in Greater Manchester.”
Michelle Murray, Relationship Director, Barclays Corporate Banking, added:
“We’re delighted to support ForHousing with this financing package. It provides the flexibility and certainty needed to deliver their ambitious development and maintenance plans. Our relationship since 2008 means we understand their priorities and we’re proud to deliver a solution that harmonises covenants and future-proofs their portfolio.”
ForHousing says the new funding will support its work to positively impact the lives of social housing tenants, and ensure homes are safe and well maintained.