NewArch Homes, the for-profit registered provider of affordable homes managed by Octopus Capital, has agreed a £25m revolving credit facility (RCF) with Lloyds.
The facility will support the continued growth of Octopus Capital’s Affordable Housing Fund (OAHF), providing flexible finance to accelerate the acquisition and delivery of new social and affordable homes across the UK.
Since launching in 2023, OAHF has committed long-term capital to deliver more than 1,150 affordable homes across the UK. With more than £525m of capital raised, the fund’s portfolio now includes more than 1,800 committed homes across England and Scotland.
Jack Burnham, CEO of NewArch Homes and head of affordable housing at Octopus Capital, said: “By bringing a leading UK lender into the sector on terms comparable to traditional housing associations, it demonstrates that for profit registered providers can access the mainstream affordable housing finance market.
“Combining institutional investment with sustainable bank financing will unlock significantly more capital for affordable housing and accelerate the delivery of high-quality homes across the UK. We hope this transaction marks an important moment for the for profit registered provider sector and encourages others to follow.”
Catherine Short, assistant fund manager at Octopus Capital, added: “We are delighted to have completed this transaction with Lloyds. Their team has been collaborative and constructive throughout the process, and I would like to thank them for the committed approach they have brought to the transaction. This facility provides an important foundation for the continued growth of NewArch Homes and the Octopus Affordable Housing Fund and represents another significant milestone in our commitment to increasing the supply of social and affordable housing across the UK.”
Jess Tomlinson, managing director, global head of real estate and housing, at Lloyds Banking Group said: “Increasing the supply of affordable homes requires long-term investment supported by flexible finance. This facility will help the Octopus Affordable Housing Fund continue to grow and deliver more homes across the UK. It also reflects Lloyds Banking Group’s wider ambition to work with partners across the housing market to help address housing need in communities throughout Britain.”
