A £110 million funding boost will allow GreenSquare to deliver its ambitious corporate plan targets to build new homes, at a time when affordable housing is desperately needed across the UK.
GreenSquare secured the £110 million at a competitive low fixed rate and will receive the funding in stages, through a process known as deferred funding. This means that it will receive £35 million now (February 2018), and the remainder in instalments until April 2019.
This funding will help finance the company'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.
It will also mean that GreenSquare is in a strong position to help local authorities in its areas to achieve their own targets for housing development, ensuring there is sufficient affordable, good-quality homes to meet demand.
GreenSquare's Chief Executive, Howard Toplis, said: “Everyone has the right to a home that they can afford, that suits their needs. With thousands of people on local authorities’ housing waiting lists, we are pleased that this funding will enable us to work closely with our development partners and local authorities to increase the number of new good quality, affordable homes across our areas of operation.
“Because we agreed to payment terms of this deal up front, we have certainty that future funding will be delivered to us at a known cost. So, we can now confidently embark on our development programme, to build 1,000 homes in the next five years – with plans to deliver 2,000 new homes by 2025 – and add value to the wider communities where we currently have homes”.
This deal was managed by TradeRisks, with Anthony Collins LLP and O’Melveny & Myers LLP acting as legal advisors and Savills as valuers.
Scott Murray, GreenSquare’s Finance Director, added: “We are delighted to have achieved such a fantastic deal. By achieving such a low loan rate, it means we will have even more money to spend on building new homes.
“It also highlights the confidence in the capital markets of GreenSquare’s strategic and financial plans, and means we are in a secure position to deliver for the future.”