Revolving Credit Facility finances Legal & General’s suburban BTR

A Revolving Credit Facility finances Legal & General’s suburban Build to Rent business with a loan to deliver 1,000 homes.

HSBC UK, Barclays and Natwest back Legal & General’s suburban Build to Rent business with a Revolving Credit Facility to deliver 1,000 homes | BTR News
HSBC UK, Barclays and Natwest back Legal & General’s suburban Build to Rent business with a Revolving Credit Facility to deliver 1,000 homes.

Backed by HSBC UK, Barclays and Natwest, Legal & General’s suburban Build to Rent business announces that it has signed a £150m five-year Revolving Credit Facility to finance its pipeline of 1,000 suburban Build to Rent homes. The facility will help address the demand for quality rental housing across the UK.

“To have secured a facility of this size in such a challenging credit environment is testament to the merit of the product that suburban Build to Rent is delivering, as well as the strength of relationship with our banking partners.

“Now more than ever there needs to be an affordable rental option that provides a viable choice. At LGSBTR [Legal & General’s suburban Build to Rent] we are determined to meet that need with high quality, well managed and specifically designed properties. LGSBTR are delighted to be working in partnership with HSBC UK, Natwest and Barclays, with this loan facility being the vital next step in helping us to deliver our mission, addressing the shortfall in high quality affordable rental properties.”

Jane Sullivan, Finance Director, Suburban Build to Rent – Legal & General Capital

Legal & General’s suburban Build to Rent aims to create high quality family homes in areas connected to schools, transport infrastructure and key amenities. Schemes will offer a best-in-class product, exceptional service as an institutional landlord, and a long-term, reliable service proposition for customers.

“We are delighted to support Legal & General in bringing much needed, high quality, professionally managed accommodation to the private rented sector. We believe the structural fundamentals will support single-family Build to Rent in becoming a leading UK investment sector, as has been demonstrated in more mature rental markets overseas.”

Michael Goode, Director & BTR Lead ­– NatWest

Homes designed by Legal & General reflect new ways of living post-Covid. Developments will promote health – with a Healthy Communities Committee set up to  learn from the NHS Healthy New Towns programme – to support health and wellbeing throughout the communities it creates. The committee will ensure that all homes and communities are designed specifically with health and wellbeing at their core.

“Committed to creating sustainable and healthy communities for our customers, we have established an internal Healthy Communities Committee, recognising the homes and communities we create can play a significant role in addressing health inequalities in future. This loan facility will support this ambition and help us to deliver a new choice of healthy homes for renters.”

David Reid, Managing Director, Suburban Build To Rent – Legal & General Capital

Developments will also features home offices for flexible working and access to more extensive outdoor space.

In line with Legal & General’s wider commitment to sustainability, the platform will target to be operationally carbon net zero from 2030.

“HSBC UK is committed to helping its clients accomplish their social responsibility goals. The provision of high-quality affordable housing not only makes good business sense but more importantly will have a big impact on our communities.”

Dan Wright, Head of Housing, HSBC UK

This Revolving Credit Facility follows Legal & General’s recent announcement with Cala Homes on the exchange of 107 homes at Buckler’s Park in Crowthorne, South East of England. This was the first forward funding transaction between the company and homebuilder Cala, which are both owned by Legal & General Capital.