Savills Financial Consultants helps Midland Heart strike £200m funding deal

Midland Heart has been supported by Savills Financial Consultants to agree a £200m funding package with HSBC, Lloyds Bank and Nationwide.

The funding raised by the A1-Moody’s rated housing association, which is responsible for 35,000 homes across the Midlands, will support efforts to modernise its existing properties and continue to build and acquire much-needed affordable homes across the region.

There was significant funder appetite to provide Revolving Credit Facilities for Midland Heart, resulting in a highly competitive final transaction structure.

HSBC, a new partner to Midland Heart, has provided £100m over five years; Lloyds Bank has provided £50m over five years; and Nationwide has provided £50m over 10 years – both the latter two lenders are existing Midland Heart partners.

Joe Reeves, Executive Director of Finance & Growth at Midland Heart, said: “The relationship we have with our lenders and investors is crucial to the implementation of our retrofit strategy in the homes we rent and the continuation of our ambitious programme to build more quality, affordable homes across the region.

“We’re thrilled to have secured these credit agreements, which recognise the value of affordable housing as an investment and reaffirm Midland Heart’s position as a stable and financially viable organisation that investors feel confident doing business with.

“We are very grateful for the assistance and value-add provided by Savills Financial Consultants throughout the process, as well as everyone involved in the success of the transactions.”

George Flynn, Director at Savills Financial Consultants, said: “Savills Financial Consultants is proud to have supported Midland Heart through these three significant transactions.

“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.

“This funding will help support and deliver Midland Heart’s purpose and the ambitions of its next corporate strategy.”

The transaction was also supported by Trowers & Hamlins, Devonshires and Pinsent Masons.