Homes England, Barclays sign £155.3m loan deal for housing projects
June 27, 2019 – Homes England, the national housing and regeneration agency for England, has signed loan deals worth more than £155.3m with Barclays Corporate Banking to fund the construction of 660 new homes in Wimbledon and Southampton regions.
A total of £150m from the approved loans will be used by Merton Catalyst to build 604 apartments residential-led scheme at the former Wimbledon Greyhound Stadium site in Plough Lane, Wimbledon.
The mixed-use development will feature commercial space and improved public realm. It will also comprise new sports stadium, which is planned to be delivered by AFC Wimbledon.
Merton Catalyst is a joint venture between housing association Catalyst and developer Galliard.
The remaining £5.3m loan will be used by Cannon Capital Developments to convert a former commercial building into 56 apartments for private sale in the city’s Ogle Road, Southampton.
Homes England chairman Sir Edward Lister said: “We promised to form new, innovative partnerships to shake up the housing market and do things differently to accelerate the delivery of new homes across the country, and this partnership with Barclays is doing just that.
“This is a real milestone moment as we announce the first loan deals to come to fruition, which will see new housing be delivered in two areas where it is needed most.”
The deals are said to be the first from the £1bn Housing Delivery Fund, which was launched by the government and Barclays in September 218 to provide up to £1bn of loan to help small and medium-sized developers to deliver new homes across the country and boost housing market.
UK Housing Minister of State Kit Malthouse said: “Upping our game to build more, better and faster is how we are going to meet our ambition of delivering 300,000 homes a year by the middle of the next decade.
“Innovations are key to unlocking the next generation of homes and our Housing Delivery Fund – a £1 billion partnership between Government and Barclays – is a great example of the new approaches we’re taking to get more homes out the starting blocks.”
Barclays Corporate Banking real estate head Dennis Watson said: “We recognised the need to get financing to smaller and medium-sized developers to help increase the number of quality homes being constructed.”