McCarthy & Stone has agreed a new £200m bank facility with four banks.
The deal is a further sign of the resurgence of the housebuilding and healthcare sectors and banks’ willingness to support them following high profile casualties during the downturn. Banks and investors alike are also increasingly looking to diversify their portfolios away from the traditional three property sub-sectors of retail, offices and logistics and looking at “alternatives”.
The new arrangement replaces a £160m loan and will be used to provide working capital to the group and support its development projects, with the business aiming to create a strategy to sell more than 3,000 units per annum “over the medium term”.
Nick Maddock, group chief financial officer, said:
“We are very pleased to have agreed this financing with our new banking partners. The revolving credit facility provides a flexible and efficient debt structure which will help support the group in its next phase of growth, with the attractive terms agreed reflecting McCarthy & Stone’s leading market position.
“The new facility delivers on one of our stated objectives to bring our capital structure and financing costs in line with our housebuilding peer group and ensures we have the appropriate platform to underpin further growth through this financial year and beyond.”
Rothschild advised McCarthy & Stone on the facility.