Broadland has completed a £50m new long-term debt facility with BAE Systems Pension Funds. This exciting development with a forward-thinking fund will support our plans to build more than 600 new affordable homes for rent and low-cost ownership over the next 4 years.
The debt financing facility will run for 35 years at a 3.64% interest rate.
Initially, Broadland will draw down £20m, with a further £30m to be drawn in 2019.
Julian Foster, Executive Finance Director at Broadland, explains:
“BAE understood our business needs and the deferred element of the deal gives us welcome certainty on future interest costs and future funding. We’re looking forward to delivering much-needed new affordable housing across a range of developments in Norfolk over the next few years.”
Jon-Paul Phillips, Portfolio Manager at BAE Systems Pension Funds, added:
“We’re delighted to be entering into a long-term relationship with Broadland through this funding transaction. On visiting the organisation, when completing our due diligence, we were very impressed with the work the association is doing. It’s an excellent organisation and we expect Broadland to play an ongoing important role in housing provision in the region.”
The funding transaction represents Broadland’s first venture to the capital markets. It complements Broadland’s existing long-term financing of £138m with various banking institutions.
Broadland currently owns and manages 5,000 affordable homes in 12 local authority areas in Norfolk and Suffolk.