Newly merged GreenSquareAccord secures £75m funding as it eyes development
GreenSquareAccord has bagged £75m in funding through aggregator Blend as the newly merged association pushes ahead with plans to develop 1,000 new homes a year.
Picture: Getty
Sharelines
The 25,000-home landlord, which formed from the merger of Accord and GreenSquare in April, accessed the 40-year bond at an all-in rate of 2.467 per cent and a spread of 128 basis points over gilts.
It is the first funding deal for the newly merged group.
James Tarrant, group head of corporate finance and treasury at GreenSquareAccord, said: “Achieving 40-year funding at this low coupon creates significant long-term value for the organisation, which will allow us to deliver on our merger promises.”
Read more
The two groups, which spent 14 months in merger talks because of a pandemic-induced delay, have combined annual revenue of around £210m and an operating surplus of £53.3m. Total combined net debt is £806.8m, based on the most recent financial results available.
The group’s properties stretch between the West Country and the North East of England.
A year ago GreenSquare underwent a £530m restructure involving eight funders to free itself of legacy agreements.
The deal is the first 40-year loan from The Housing Finance Corporation, Blend’s parent company, since 1987.
Piers Williamson, chief executive of Blend, said: “Given the resurgence of inflation as a risk factor, the ability to lock in a 2.467 per cent cost of funds for 40 years is a big deal and allows our borrowers to look to the future with confidence as they focus on the huge challenge of becoming net zero carbon by 2050.”
RELATED
News10 Mar 2025
Community Housing hires interim chief financial officer
News05 Mar 2025
Two Essex landlords in talks to merge by end of year
- © Social Housing
- All rights reserved