A Worcestershire housing group has secured financial backing from Barclays Commercial Bank in a £180 million deal.
Festival Housing Group, which includes Elgar and Spa Housing Associations and Property Care Partnership, will restructure its arrangements and has the backing to build more new homes.
The company provides affordable housing, low cost home ownership and supported housing and building maintenance. It employs more than 500 staff and manages a portfolio of 8,000 properties in Herefordshire and Worcestershire.
It is undertaking its largest development which will create 250 affordable homes this year.
The funding will enable the group to realise its plan to provide 500 homes over the next two years and 150 homes each year thereafter for a ten-year period at a capital cost of nearly £200 million. This will help to tackle the huge waiting list for homes across the area.
Chief exective, Guy Weston, said: "The new funding facility from Barclays comes at a key time for Festival. We have just launched a new five-year strategic plan and the group has serious ambitions to achieve excellence in service delivery, provide much needed new homes and work to improve neighbourhoods and communities."
Chris Huntbatch, relationship director in the Midlands social housing team at Barclays Commercial Bank said: "We have been working closely with Festival Housing Group since 2002 when we became their bankers.
"Through understanding their business and their future growth ambitions, we have been able to develop an attractive refinancing structure that will enable Festival Housing Group to fulfil their aspirations. This deal demonstrates our appetite for the housing association market which remains an important sector to us."