Large Midlands landlord secures £200m in credit facilities with three lenders

HSBC is a new lender to Midland Heart and agreed a £100m RCF over five years.

Lloyds Bank has provided £50m over five years, while Nationwide has provided £100m over five years. Both are existing lenders to the association.

The interest rates on the facilities were not disclosed.

Joe Reeves, executive director of finance and growth at Midland Heart, said the agreements “reaffirm Midland Heart’s position as a stable and financially viable organisation that investors feel confident doing business with”.

In its last full year to the end of March 2023, Midland Heart recorded a post-tax surplus of £40.7m, compared to £55.5m the year before. Turnover rose seven per cent to £221.1m.

George Flynn, a director at Savills Financial Consultants, said: “Following a highly competitive tender process and subsequent negotiations, Midland Heart was able to secure a fantastic result which provides additional liquidity and introduces a new funder to the organisation.”

Midland Heart currently has total debt of £625m, with cash and available facilities of around £400m.

The group’s chair is Lord Austin, a former advisor to Gordon Brown and one-time minister at the then Department for Communities and Local Government.

He was appointed by Midland Heart in February this year and also sits on the board of Homes England. 

Midland Heart currently has a G1/V1 rating with the Regulator of Social Housing.