Housing provider aims for 1,000 new homes after £100m deal
A social housing provider in Northumberland is aiming to spend £100m building new homes and revamping it’s existing stock.
Bernicia has secured the loan from Barclays Bank which and aims to use it to build up to 1,000 new affordable homes
The housing association owns and manages properties in the Ashington, Blyth, Cramlington, Morpeth, Bedlington and Berwick areas and has a portfolio of 14,000 homes in the region, as far south as Redcar.
Janette Longstaff, executive director of finance at Bernicia, said: “The support shown by the Barclay’s team reflects their ongoing confidence in Bernicia, our business, people and our ambitious plans.
“Securing this new £100m facility adds further strength and capacity to Bernicia and will support us in the delivery of our new Corporate Strategy.
“Over the strategy period we will invest £400m in homes, neighbourhoods and communities.”
She added: “Well structured, competitively priced debt is central to making our ambitions deliverable.
"We were able to secure highly competitive terms from a strong field of lenders. Barclays offered the best overall package, and we're delighted to be extending our relationship with them.”
Bernicia, which has it’s headquarters in Ashington, has also refinanced an existing £20m revolving credit facility line with Barclays.
Brian O’Connor, relationship director at Barclays, said: “We are delighted to have supported Bernicia with £100m of new funding, strengthening their ability to invest in communities across the North East.
“This new funding will support the delivery of up to 1,000 new affordable homes over the next five years, helping to address a critical housing need in the region.”
Working with Barclays, a loan-linked International Swaps and Derivatives Association arrangement is also in place to manage exposure to any rise in interest rates.
Corporate finance advice specialist Centrus advised Bernicia on the new facility, which is structured across two tranches – a seven-year and a ten-year – delivering highly competitive pricing for both tenors.
Tom Archer, director at Centrus, said: “Bernicia is a fantastic organisation to work with, and this is a great outcome – well-structured loan and hedging facilities, at highly competitive pricing,”
“We're delighted to be supporting Bernicia as they look to deliver on an ambitious and important strategy for the North East."