Landlord steps up development spend as it prepares to merge with Settle on Monday
Paradigm Housing has reported a drop in its surplus for the first six months of the year as it increased its spend on development by 22%.
The 17,000-home association announced in an unaudited trading update today that its surplus for the six months to 30 September was £12.4m, down from £14.2m for the same period the previous year.
The reduction was due to a £2.2m increase in borrowing costs.
It said: “Interest and funding costs have increased by 12.5% to £19.8m as a result of an increase in our debt at a higher interest rate to fund our development programme. “
Paradigm spent £55.8m on new homes in the six months, up 22% on the £45.7m it spent in the same period last year. Its spend on existing homes dropped from £24.5m to £23m.
The group completed 131 homes, down on 160 last year.
The update come ahead of Paradigm’s merger with 10,000-home provider Settle, which is expected to complete on Monday.
The merger would create a landlord with a turnover of more than £230m. The landlords are also proposing to buy 3,500 homes in south Buckinghamshire from L&Q. If both the the merger and L&Q deal go ahead, the newly-merged landlord will manage 30,000 homes.
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