ForHousing wraps up £215m refinance to deliver 1,000 homes

Working with NatWest and Barclays, the social housing provider has taken on £75m in revolving credit facilities and £140m in term debt facilities, a move that will also enable further investment in the 19,000 residences it currently owns in Knowsley, Salford, and Cheshire West.

ForHousing renegotiated loan covenants as part of the refinancing deal. The agreements also see the increase in total borrowing to £321m for the association – a move that the organisation said will “improve medium-term liquidity, safeguard long-term viability, and support the delivery of the ForHousing Strategy”.

This strategy, which runs through 2038, calls for the building of 1,337 new homes. It also includes a series of improvements for properties in ForHousing’s current portfolio following a stock condition survey.

Regarding the financing deals, Mark Bradshaw, executive director of finance at ForHousing, said: “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.”

The agreement with NatWest utilised the bank’s £500m social loan product, which was launched in July last year. These loans have discounted interest margins and no arrangement fee. NatWest said this would help housing groups around the country save up to £25m on their financing agreements.

Both NatWest and Barclays have been working alongside ForHousing for years.

Barclays Corporate Banking relationship director Michelle Murray paid homage to the longevity of the relationship the financier has with the housing association.

“We’re delighted to support ForHousing with this financing package,” she said. “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.”

While the refinancing will help ForHousing on its housing delivery ambitions, the group has not been sitting still as it waited for the deal to complete. Last year, the housing association invested £62m to deliver 376 homes. ForHousing is lined up to operate Lancet’s 40-home project off Worsley Road, the 63-flat Adelphi Lads Club redevelopment, and the £23.5m resi conversion of Pendleton House – all in Salford.