Hertfordshire based housing association, Thrive Homes, has secured a £50million funding package from Lloyds Bank Commercial Banking to support its plans to build 1,000 new homes and grow its portfolio by a quarter by 2021.
As part of that growth, Thrive Homes is set to build over 150 homes on recently acquired land in Watford and Hemel Hempstead. These new developments will offer a range of high quality homes that will be affordable to a variety of prospective new customers.
Lloyds Bank provided a tailored finance package by utilising its £500million Social Housing fund which was announced earlier this year to help fund the growth and these schemes in particular. The package included a £25million loan and a £25million revolving credit facility. This will allow the organisation to release funds on a flexible basis to be able to invest in future projects.
Thrive Homes, established in 2008, currently has over 5,000 homes in management and construction across Hertfordshire, Bedfordshire, Oxfordshire and Buckinghamshire. The organisation employs 102 people and has an annual turnover of £26million.
Shaun McLean, Resources Director at Thrive Homes, said: “This year marks our 10th anniversary and it seemed fitting to celebrate by committing to build even more high-quality and affordable homes”.
“Our land-led schemes form part of the first step of our ambitious plan, and by 2021 we hope to develop 1,000 more homes for people across the South of England. Now is the ideal time to invest in more homes. The recent announcement by Theresa May has boosted support for our sector and recognised the important role housing associations can play in tackling the current housing crisis.
“We first approached Lloyds Bank to secure a more flexible way of funding our operations. The team took the time to fully understand our business plan, and as a result was able to provide a finance package that was exactly suited to our needs.”
Christopher Hudson, Associate Director at Lloyds Bank Commercial Banking, said: “Organisations like Thrive Homes are playing a vital role in addressing the UK’s housing shortfall, developing lively and diverse communities in highly sought-after areas. We recognise Thrive Homes, as a strong, forward-thinking organisation and one which we are proud to build a new relationship with.
“Research by Heriot-Watt University has revealed that the country needs to build more than 140,000 affordable homes every year until 2031 to successfully tackle the current housing crisis.
“We recognise to achieve this figure housing associations need the tailored funding to succeed. This is why we’re helping organisations to prosper by making available £750million of new funding to associations across the sector this year as part of our wider Helping Britain Prosper pledge to provide £2.25billion of funding between 2018 and 2020.”