Housing association could get reduced interest rate if it hits sustainability targets
Great Places Housing Group has agreed new loans worth £225m with a trio of banks.
Existing lenders NatWest and Santander will provide additional funding of £50m and £75m respectively to the 26,000-home housing association.
Meanwhile, a new lender, Nationwide, will provide £100m. All three loans are term debt facilities running for 10 years each.
It follows a £284m package of loans announced by the provider in April 2024, which also includes NatWest and Santander.
It was advised by Savills on both sets of deals.
Great Places is based in Manchester and provides affordable homes in more than 30 local authority areas across North West and South Yorkshire
It said the funds would be used to build new homes and “improve the lives of the people living in its communities”.
The housing association’s latest corporate plan includes investments in its existing stock as well as building 4,000 new affordable homes.
The additional funding includes sustainability-linked performance measures, which would see a reduced interest rate if Great Places meets agreed energy efficiency targets on new and existing homes.
>> Read more: Great Places starts ‘below target’ despite doubling 2024/25 total in last three months
Mike Gerrard, chief financial officer at Great Places, said: “The additional funds will enable us to continue our ambitious development plans, improve our existing housing stock and make a real difference in the communities we serve.
“We are particularly pleased that these agreements include sustainability-linked performance measures, which align with our goals to enhance energy efficiency and sustainability across our portfolio.”
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