UK: L&G’s new suburban BTR business has secured a £150 million credit facility from a consortium of lenders.
The cash will be used to fund L&G Suburban Build to Rent’s (LGSBTR) 1,000 home pipeline. The five-year loan deal with Barclays, HSBC and Natwest will help address the “significant demand for quality rental housing across the UK”.
The deal with the three banks follows L&G Suburban Build to Rent’s (LGSBTR) deal to buy 107 homes from fellow L&G company Cala Homes at its Buckler’s Park site in Crowthorne, Berkshire. Last year it also forward funded a 117-home scheme by Countryside in Great Haddon, Peterborough.
Jane Sullivan, finance director at LGSBTR, said: “Now more than ever there needs to be an affordable rental option that provides a viable choice. At LGSBTR we are determined to meet that need with high quality, well managed and specifically designed properties.”
Michael Goode, director & BTR lead at NatWest, said: “We believe the structural fundamentals will support single-family BTR in becoming a leading UK investment sector, as has been demonstrated in more mature rental markets overseas.”
