A £20 million funding boost will allow GreenSquare to deliver its ambitious five-year business plan to build much-needed affordable housing across Wiltshire, Oxfordshire and Gloucestershire.
Last week (20 April 2016) GreenSquare secured a finance deal with the European Investment Bank (EIB) through the Government guaranteed aggregator Affordable Housing Finance (AHF) at an overall cost of 1.937%.
This £11 million loan from Europe’s long-term lending institution will help finance GreenSquare’s development programme, underpinning the construction of 2,000 new affordable homes and homes for low cost home ownership across Wiltshire, Oxfordshire and Gloucestershire by 2025.
The additional £9 million comes from a recent bond transaction with Affordable Housing Finance (AHF) at an overall cost of 2.675%, representing one of the lowest costs under the government Affordable Housing Guarantees Programme to date.
GreenSquare's Chief Executive, Howard Toplis, said: “This funding is great news for people in need of housing across Wiltshire, Oxfordshire and Gloucestershire, who are going to benefit from our ambitious new homes development programme. We are delighted that we have achieved such a low loan rate, which we understand is a record low.
“We can now confidently embark on our development programme to build 1,000 homes in the next five years, helping us to not only increase the number of new good quality, affordable homes across our areas of operations, but also allowing us to add value to the wider communities where we have homes.”
The EIB is the EU's long-term lending bank, owned by the member nations of the EC (the UK Government is one of the four equal largest shareholders with a 14% holding) that can provide investment funds at AAA rates for the purposes of investing in UK housing regeneration.