Lloyds, BlackRock particpate in £275m UK housing trust financing

Lloyds Bank Commercial Banking and BlackRock are among a group of lenders which have provided a £275 million (€323 million) debt package to a housing association in Manchester, UK, according to Real Estate Capital's sister title, Private Debt Investor.

Lloyds Bank Commercial Banking and BlackRock are among a group of lenders which have provided a £275 million (€323 million) debt package to a housing association in Manchester, UK, according to Real Estate Capital’s sister title, Private Debt Investor.

brick-house-construction4111The financing of Trafford Housing Trust will support the trust’s joint ventures and fund the construction of 2,000 homes over four years.

Savills Financial Consultants arranged the deal, which also involves Pension Insurance Corporate (PIC) and Yorkshire Building Society.

BlackRock and PIC provided £75 million each and Yorkshire Building Society supplied a £25 million loan. Lloyds provided a £100 million revolving debt facility.

The mixed-maturity deal replaces a previous £145 million facility. A total of £100 million of the trust’s new funding is available to be lent to joint ventures or subsidiaries.

Jonathan Stevens, head of European infrastructure debt at BlackRock, said: “This financing provides an excellent opportunity to invest in the UK social housing sector, which is an essential service and provides our clients with an inherently stable, long-term cash flow profile.”

Larry Gold, chief executive of Trafford Housing Trust, said: “The trust is a financially strong group of companies and this deal demonstrates great confidence among funding in the trust’s governance, leadership and ambitious growth strategy.”

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