Sovereign Network Group (SNG) has secured a £50 mln (€59 mln) unsecured short-term trade loan from Barclays to build 25,000 new homes over the next decade.
This marks the bank's largest such facility to a housing association to date.
As the UK's second-largest housing association developer, SNG aims to address the nation's housing crisis by providing affordable homes.
This deal comes as the new Labour government announced a reintroduction of housing targets, with the aim to build 1.5 million affordable new homes during the next parliament.
Jason Constable, head of Real Estate at Barclays UK Corporate Bank said: ‘This bespoke short-term trade loan facility is another example of our renewed focus on supporting and lending to more businesses across the UK. The housing sector is a critical element of the UK economy, and we remain focused on how we can support the delivery of increased levels of new housing stock in the UK as well as supporting the retrofit agenda for our clients’ legacy estates.’
Anup Dholakia, director of Treasury at SNG commented: ‘Delivering the new homes to address the housing crisis is a huge challenge but through innovative funding approaches with the private sector, like this loan, alongside new commitment from government, there is the opportunity for real progress to give people and our economy the best foundations to grow.’
Barclays serves 65% of the top 200 housing associations in UK and its support extends across lending, operational banking, and debt capital markets.
SNG provides over 84,000 affordable homes across London and the South of England and is committed to building 2,500 new homes annually by 2026. It prioritizes social and environmental sustainability through its Homes and Place Standard and a planned £100 mln (€118 mln) Community Foundation.
