Legal & General’s suburban build-to-rent business (LGSBTR) has signed a £150 mln (€170 mln) five-year revolving credit facility to finance its pipeline of 1,000 suburban build-to-rent homes.
Backed by HSBC UK, Barclays and Natwest, the facility will help to address the significant demand for quality rental housing across the UK, creating high-quality homes and communities.
Jane Sullivan, finance director of Legal & General SBTR, said: 'To have secured a facility of this size in such a challenging credit environment is testament to the merit of the product that SBTR is delivering, as well as the strength of relationship with our banking partners.
'Now more than ever there needs to be an affordable rental option that provides a viable choice. At LGSBTR we are determined to meet that need with high quality, well managed and specifically designed properties.'
The loan follows LGSBTR’s recent announcement with Cala Homes on the exchange of 107 homes at Buckler’s Park, Crowthorne, in the South East of England. This was the first forward funding transaction between LGSBTR and major homebuilder Cala, which are both owned by Legal & General Capital.
LGSBTR homes are designed to reflect new ways of living post-Covid and features that promote health, such as exceptional build quality, home offices for flexible working, and access to more extensive outdoor space.
In line with Legal & General’s wider commitment to sustainability, the SBTR platform will target to be operationally carbon net zero from 2030.
LGSBTR have also set up a healthy communities committee, which includes learnings from the NHS Healthy New Towns programme, to support health and wellbeing throughout the communities it creates.
David Reid, managing director of Legal & General SBTR, said: 'Committed to creating sustainable and healthy communities for our customers, we have established an internal Healthy Communities Committee, recognising the homes and communities we create can play a significant role in addressing health inequalities in future.
'This loan facility will support this ambition and help us to deliver a new choice of healthy homes for renters.'
