Australia’s biggest business bank launches into UK social housing with more than £250m of deals
National Australia Bank (NAB) has launched into the UK social housing market with more than £250m of bank deals, including facilities for two London G15 members.
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Australia’s largest business bank signed its first £75m revolving credit facility in the sector with Sovereign at the end of 2018, and has now provided facilities to L&Q, A2Dominion and CHP.
The arrangements with the G15 London associations include a £100m facility with L&Q and a £75m, five-year revolving credit facility with A2Dominion.
Michael Carr, director at NAB, told Social Housing: “We would like to say how pleased we are to have commenced our activity in the sector with such a strong list of counterparties. Working with new entrants into a sector always requires a collaborative approach to transactions.
“Our new clients very much helped us in this process and enabled us to make what we hope will be viewed as a positive entrance into the sector and allow us to continue to grow along with our clients.”
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A2Dominion’s deal supports the G15’s strategic plans to deliver more new homes in southern England.
Dean Tufts, executive director of finance and strategy at A2Dominion, said the group “will continue to look for similar opportunities to support our vision to improve people’s lives through high-quality homes and services”.
Mr Carr added: “The NAB UK social housing team is committed to building relationships with housing associations to help reduce the housing shortage. Providing finance to this sector isn’t just about assets and financial transactions – it’s about projects that make a difference to people’s lives.”
The deal with L&Q was done with law firm Capsticks advising on facility arrangements and associated security charging. Completion of the facility agreement and the security arrangements on 714 units took place simultaneously, within three weeks of the funder’s solicitors confirming their appointment.
Martin Watts, director of treasury at L&Q, said: “We are very pleased to have closed these deals in record time, working in close partnership with the Capsticks team.”
The arrangement with Essex-based CHP formed part of the association’s £100m refinancing.
NAB has branches in the US, the UK and Asia. Its infrastructure investments include in schools, hospitals and roads.
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