Midland Heart secures £200 million of bank facilities to support future investment in homes

Midland Heart has confirmed the agreement of banking facilities worth £200m, following another strong year of financial and operational performance.

20th Dec 2023 - Investor news

Midland Heart’s financial discipline and top A1 credit rating from Moody’s Investors Services, held by few in the housing sector, has allowed the organisation to secure competitive funding that will be vital in the delivery of its next corporate strategy.

Responsible for 35,000 homes across the Midlands, this funding will support the housing provider’s efforts to modernise its existing housing stock and continue to build and acquire much-needed affordable homes across the region.

The organisation has reached an agreement with HSBC for £100m, Nationwide, for a £50m loan facility across a period of 10 years, and £50m with Lloyds Bank.

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.

Joe Reeves, Executive Director of Finance & Growth at Midland Heart

Treasury advisor to Midland Heart, Savills Financial Consultants, played a key role in supporting the organisation through the competitive process of securing the funding agreements.

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.”

Midland Heart was also supported by Trowers & Hamlins (banking) and Devonshires (property), with banks being supported by Pinsent Masons.