Scottish landlord secures £19m from major bank for new homes
Eildon Housing Association has obtained £18.7m in funding from the Royal Bank of Scotland (RBS) to help build up to 100 homes.
Eildon Housing Association manages homes across the Scottish Borders (picture: Alamy)
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The landlord, which manages around 3,000 homes across the Scottish Borders, has agreed a five-year revolving credit facility and 15-year term loan with the bank. The funding is all new finance.
Details on the interest rates and split in the amount of funding between the two facilities were undisclosed. There is no environmental, social and governance element to the funding.
Eildon was formed in 1973. It has an aim to build 800 new homes as part of its five-year strategy up to 2028.
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The landlord said it will use the new funding help build between 80 and 100 new homes.
This includes older people’s housing and residential-based care services, as well as support for adults with learning disabilities.
According to its financial results for 2023-24, the association delivered 186 homes during the year, a rise from 47 in the previous year.
Lynn Mirley, director of business support at Eildon, said: “Securing this deal with the Royal Bank of Scotland allows us to help alleviate some of the pressures the current economic climate is placing upon local communities.
“It is important to us to have this sort of backing as it demonstrates the confidence in Eildon Housing Association’s ability to continue to make a real difference in people’s lives.”
In March 2024, NatWest Group, which owns RBS, said it was aiming to provide £5bn of lending to UK housing associations over the next three years.
As of August, NatWest Group had lent £2.8bn to the sector across the UK.
Martin McCourt, relationship director – real estate finance at RBS, said: “We have committed to supporting the housing industry in alleviating the current strain faced by local authorities and residents caused by the housing crisis.
“We look forward to seeing the fulfilment of Eildon Housing Association’s strategy as it continues to tackle these challenges.”
Harper Macleod served as Eildon’s lawyers, while Brodies acted for RBS.
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