Mosaic Housing Association has increased its loan facilities from 拢115m to 拢195m in deals with Barclays and Abbey.

The east London landlord, formerly New Islington & Hackney Housing Association, will spend the funds on development.

Of the extra 拢80m, 拢50m has come from a consortium led by Barclays. The bank has supplied 拢15m of the new funding, with Newcastle and Derbyshire building societies providing 拢17.5m each. This increases Mosaic鈥檚 loan facility with Barclays to 拢110m.

Abbey has provided an extra 拢30m, taking its loan facility with the landlord to 拢85m.

Both loans will be repayable over 30 years.

As one of the Housing Corporation鈥檚 70 development partners, Mosaic has already received 拢58m of corporation funding to develop 1000 new homes in the South-east over the next two years.

Mosaic currently manages about 6500 homes.

Ken Youngman, finance director at Mosaic, said the deals with Barclays and Abbey would allow the association to raise its loan facilities again in the next 18 months.

鈥淲e鈥檝e got a long-term business plan to build 500 units a year and we still have capacity to borrow more from Barclays and Abbey,鈥� Youngman said.

New Islington & Hackney was renamed Mosaic as part of a 拢10,000 rebranding exercise in September (HT 24 September, page 12).

Source

Housing Today