Lloyds Banking Group and Government initiate first investments under £100m Housing Growth Partnership
Support for housebuilders will improve the supply of housing and accelerate the development of homes
First three investments delivered in Devon, Cambridgeshire and Edinburgh
Lloyds Banking Group and the Government have confirmed investments from the £100m Housing Growth Partnership as part of a drive to increase the supply of new homes and provide much needed capital into the UK’s house building sector.
The partnership, launched in July 2015, is a dedicated joint venture between the Government and Lloyds Banking Group which invests between £500,000 and £5 million in housing developments alongside smaller builders.
Both the Government and Lloyds Banking Group have put £50m into the pot and expect to make around 50 investments and provide an additional 2,000 UK homes over three years.
Campbell Buchanan, a Cambridgeshire based house builder has secured £1.7m, one of the first investments from the Partnership which will fund the development of 40 new homes in Brington, Cambridgeshire. Debt facilities have been provided by Heritable Development Finance, part of One Savings Bank.
Campbell Buchanan has recently successfully completed the first phase of its Brington development and will now focus on the remainder of the development which is expected to be welcoming its first homeowners by spring 2017.
Andrew Hulme, CEO of the Housing Growth Partnership said:
“The supply of housing is a key concern in relation to the UK’s long-term prosperity and small and medium-sized housebuilders are fundamental in helping close that gap.
“Campbell Buchanan is a highly experienced operator with a passion and a proven track record of building high-quality developments. This investment will support the next phase of the Brington development and help them achieve their growth ambitions more quickly.
“Through this partnership we are committed to providing experienced housebuilders with the right capital to accelerate the supply of new homes in areas of high demand and under supply.”
Toby Markham, Chief Executive, Campbell Buchanan:
“The Housing Growth Partnership really took the time to understand our business strategy and proved easy to work with throughout the process. We welcome this investment which will help Campbell Buchanan accelerate its growth plans whilst remaining in full control of the business.”
Separately the Housing Growth Partnership has also completed investments with Devonshire Homes in the South West and AMA Homes in Edinburgh.
Devonshire Homes secured £2m of equity from the Housing Growth Partnership along with £4m of debt finance from Lloyds Bank Commercial Banking. The funding will help Devonshire Homes expand its operations and build 250 residential properties a year from 2017 across its core regional markets of Somerset, Devon and Cornwall.
The first site to benefit is in Cullompton, Devon where the business is building 100 one, two, three and four bedroom properties, set to be completed by 2018.
In Scotland, the Housing Growth Partnership has invested £3m with AMA Homes who have been producing high quality homes in Edinburgh for the last 30 years. The funding has helped AMA Homes to complete a 34 unit townhouse and apartment development in central Edinburgh for much needed city centre living, including accommodation for local key workers.
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