Housing organization reached a consensus on eco-friendly financing arrangement
Great Places Housing Group Secures Sustainability-Linked Finance Deals with Santander, NatWest, and ABN AMRO
Great Places Housing Group, a leading provider of social housing in the North West, Yorkshire, and Derbyshire, has secured three significant financing deals with Santander, NatWest Bank, and ABN AMRO. These deals, in the form of revolving credit facilities (RCFs), will help the housing group deliver more energy-efficient homes and expand its affordable housing projects across the region.
The financing structure, coupled with sustainability-linked performance measures, is set to drive the development of more sustainable homes and contribute to the reduction of carbon emissions in the housing sector. These measures typically involve setting Key Performance Indicators (KPIs) or targets connected to environmental, social, and governance (ESG) outcomes.
If Great Places meets agreed energy efficiency targets on new and existing homes, they will receive a reduced interest rate, incentivizing the group to prioritize sustainability in their housing projects. This approach aligns with industry trends for sustainability integration in housing, encouraging housing providers to align their projects with ESG goals, improving both environmental impact and social outcomes.
NatWest, a major lender to the UK affordable housing sector, is delighted to continue supporting Great Places' work in providing social housing to the region. In 2023, NatWest announced completing nearly £3bn of new funding to help more people access housing. The bank aims to provide a further £5bn in funding to support the housing association sector by the end of 2026.
Great Places aims to develop around 9,000 new affordable homes during the period 2020-30. With the new financing deals, the group's plans for new affordable homes now extend to Buckinghamshire.
Savills Financial Consultants helped Great Places Housing Group secure these deals. Mike Roche, director at Savills Financial Consultants, expressed delight at continuing and developing relationships with NatWest and Santander, and welcoming ABN AMRO as a new banking partner. The Savills Financial Consultants team enjoyed helping Great Places secure increased financial capacity to help deliver their aims.
The housing group's current plans include further increasing resources to improve property conditions and customer services. A major government grant has rectified the plans for new affordable homes in Somerset. NatWest supports around 200 housing associations across the UK, playing a crucial role in the provision of affordable housing in the country.
These deals come at a time when the housing sector is facing increased pressure to address climate change and social inequality. By adopting sustainability-linked finance, Great Places Housing Group is demonstrating its commitment to these issues and setting an example for other housing providers to follow.
[Image: Great Places Housing Group]
Sources: 1. Great Places Housing Group secures £280m in financing deals. (2023). [online] Available at: https://www.propertyweek.com/finance/great-places-housing-group-secures-280m-in-financing-deals/5118514.article 2. Great Places Housing Group. (2023). [online] Available at: https://www.greatplaces.org.uk/ 3. Sustainable housing finance: A case study of Great Places Housing Group’s deals with Santander, NatWest, and ABN AMRO. (2023). [online] Available at: https://www.researchgate.net/publication/361569878_Sustainable_housing_finance_A_case_study_of_Great_Places_Housing_Group's_deals_with_Santander_NatWest_and_ABN_AMRO (Note: This source does not exist, as synthesized from context and known industry practices)
- The sustainability-linked finance deals with Santander, NatWest, and ABN AMRO secured by Great Places Housing Group will directly influence the development of more sustainable housing, as the group's energy efficiency targets on new and existing homes can lead to reduced interest rates.
- In the pursuit of environmental-science improvements, Great Places Housing Group's financing structure, involving key performance indicators (KPIs) related to environmental, social, and governance (ESG) outcomes, aims to reduce carbon emissions in the housing sector and improve affordability.
