The six Small associations that formed Network Housing Group are now borrowing on more favourable terms than they did as lone entities.
Members formed the group last month in the hope of achieving better borrowing terms – and the move appears to have paid off. For example, Solon Cooperative Housing Services can now save £100,000 on a £20m loan.

Network is getting the better deals via Group Fund, a vehicle set up as part of the group structure to borrow from banks. It also pays banking and legal fees. The fund is then able to pass the money on to the housing associations that make up the group.

Group Fund took out a £247m facility with a consortium of banks including Halifax Bank of Scotland, Barclays, Abbey National and Allied Irish Bank. It has a security trust that enables its borrowing to be secured on the assets of the associations.

The group comprises key-worker specialist London Strategic Housing, black and minority ethnic association Mitali, Network Housing Association, LSVT Riversmead Housing Association, consultant Solon Community Network, Solon Cooperative Housing Services and older people's association Willow Housing.

As well as the borrowing terms, the group was set up so that its members could gain the benefits of strong centralised services, political muscle and the ability to develop, while retaining local autonomy and identity.

Group chief executive Nick Wood said: "Group members get autonomy in service terms. As long as they deliver they are left alone."

Source

Housing Today