Legal & General Commercial Lending Limited has provided a £150m, long-term refinancing facility to housing association The Hyde Group.
The facility, which expires in 2041, is secured on Hyde’s housing assets. The loan takes out Santander’s original facility and will help London-based Hyde develop 6,000 new homes in the capital and the South East.
The loan is L&G’s third facility to the housing association following two loans totalling £102m to Hyde subsidiaries in 2013.
“Our long-dated money is a good match for this type of loan and sector,” said Alex Gipson, social housing lending manager at L&G.
“Whilst there has clearly been a desire by existing mainstream bank lenders, such as Santander, to work with institutions to refinance existing long-term loan commitments, this is the most significant example and has required a constructive approach by all three parties.”
L&G said the new facility would “introduce further flexibility to the terms, including the absence of financial covenants, which provides Hyde with additional freedom to continue to meet its long-term business requirements.”
Established in 1967, Hyde is one of the largest providers of social housing in London and the South East, managing around 50,000 properties.
Ray Christopher, director of corporate finance at Hyde, said: “We continually assess the existing finance portfolio to make sure it remains ‘fit for purpose’ and supports our business objectives, including our planned delivery of 6,000 homes over the next five years.”