Housing provider Orbit Group has secured a £195m finance package with Lloyds Banking Group to upgrade thousands of social homes across the Midlands, East and South East of England.
The package includes a £90m refinance and increased credit facility, a £30m retrofit loan partially guaranteed by the National Wealth Fund and a £75m package from Scottish Widows, which combines existing debt with new funding and extends the term to provide Orbit with long term certainty and flexibility for future investment and planning.
The funding will support investment in existing homes, customer experience and the development of new and regenerated properties, while accelerating energy efficiency upgrades to ensure all homes achieve EPC band C or above by 2030.
Anthony Homan, finance director – corporate finance and group reporting, at Orbit Group, said: “We are delighted to be working with Lloyds Banking Group and the National Wealth Fund. This arrangement will support us in continuing to provide good quality, energy efficient, affordable and safe homes, whilst continuing our drive to create inclusive and sustainable neighbourhoods so more people have a good quality home that they can afford, in a place that they are proud to live.”
Jess Tomlinson, global head of real estate and housing at Lloyds Banking Group, added: “This finance agreement demonstrates how we can bring the full strength of Lloyds Banking Group to support clients like Orbit. By combining our banking and long term investment expertise, we’re helping the sector deliver more sustainable homes and improving the living experience for residents.”
Stuart Nivison, head of portfolio management at National Wealth Fund, said: “We’re pleased to see Orbit secure this latest finance package to deliver more energy efficient homes for its residents across the UK. Financial guarantees provided by the National Wealth Fund are ensuring that lenders like Lloyds can continue to help registered providers access the financing that they need to deliver homes fit for the future.”
