Allison Homes has completed a £165million finance facility to support its continued expansion across the East of England, the Midlands and the South West.
The refinancing package has been agreed with three major funding partners – HSBC, NatWest and Homes England, the government’s housing and regeneration agency.
This marks a significant milestone in the company’s growth strategy, enabling it to accelerate land acquisition and development and increase the supply of affordable, high-quality homes across its regions.
Ian Trinder, chief financial officer of Allison Homes, said:“This is a very exciting moment for our business as it shows real confidence from strong funding partners in our long-term growth plans. Regional homebuilders, like Allison Homes, play a crucial role in delivering the housing needed to meet local and national demand, while also investing in infrastructure, creating jobs and supporting the local economy.”
“Importantly, this financial package means we can continue our ambitious growth trajectory, whilst focusing on what matters most- building high-quality homes, creating places people are proud to live in, and being the homebuilder that people can trust.”
“Over the past year, we’ve taken decisive steps to strengthen the business for the long term – investing heavily in land, regional growth, operational infrastructure, systems and our people. We’ve also grown unit sales from 626 to 808 and revenue from £154million to £202million, with a significant focus on recurring Partnership revenue alongside open market sales.”
“Delivering this during a challenging economic period has been no small task, and we’re incredibly proud of what we’ve achieved to date. The country continues to face a significant housing shortfall, and our sector has an important responsibility to help address it.”
Financing will be provided by the Home Building Fund, which is designed to support SME housebuilders to overcome funding barriers in order to build homes more quickly. It will help Allison Homes accelerate towards building 2,000 homes annually, capitalising on improving interest rates.
Simon Century, chief investment officer at Homes England, said: “Small and medium housebuilders play a vital role in building a diverse and resilient housing sector. Funding from Homes England will enable Allison Homes to expand its regional delivery, supporting the construction of more high-quality, affordable homes.”
“This financing deal is a prime example of how the Agency works collaboratively with both public and private partners to achieve our mission of building thriving communities that people can be proud to call home.”
The homebuilder has a strong development pipeline, underpinned by a land acquisition strategy evenly balanced between Partnerships and open market homes, following the expansion of its Partnerships division. The homebuilder has also recently opened offices in Bristol and the East Midlands and acquired its largest site yet – a 510-home development in a prime Bristol location.
Mark Pope, director at NatWest Real Estate Finance, said: “We are delighted to continue to be able to support Allison Homes with this facility to help them achieve their future growth plans, delivering much-needed additional housing. NatWest has a long history of supporting the residential market across all tenures, and this transaction is another example of how we provide execution excellence, delivering optimal funding solutions alongside our lending partners.”
Joe Bailey, relationship director at HSBC Real Estate Finance, said: “HSBC UK is pleased to continue supporting Allison Homes at a pivotal stage in its growth journey. This new financing package reflects our confidence in the strength of the business, its management team and its commitment to delivering high-quality homes across the regions it serves.”
