Telford Homes has signed a new £180m corporate loan facility with a quartet of banks.
Allied Irish Bank has become a lender to the residential developer for the first time. It joins HSBC, Royal Bank of Scotland and Santander in providing the facility, which will expire in March 2019.
This replaces a £120m loan facility with HSBC, RBS and Santander. Telford Homes said the new arrangement “provides significantly increased working capital flexibility at a lower cost of debt”.
The company currently has a £1.1bn development pipeline that it is looking to build out in the face of a chronic shortage of mainstream housing in the UK.
Katie Rogers, group financial director of Telford, said: “[The facility] not only offers increased flexibility on site purchases and development funding but, importantly, allows the group to facilitate its growth plans over the next few years. This new facility clearly demonstrates our banks’ continued confidence in Telford Homes as well as the overall strength of the London property market.”