Press Releases

31st March 2004

 

£127 million Private Funding to Support 2,000 New Affordable Homes

 

The Midsummer Group has successfully secured an increased loan facility of £110million, ensuring it can continue to be a key provider of affordable housing in the Milton Keynes and South Midlands Growth Area. 

 

The private funding, which is being provided by Nationwide Building Society and Barclays Bank, will be used to accommodate the growth envisaged in Midsummer’s ambitious business plan. The 30-year loan facility is to finance a minimum new build programme of 2,000 properties, and incorporates a number of features to facilitate shared ownership development, whilst maximising the cash the Group itself is able to invest. 

 

Finance Director for Midsummer, Dave Adams, who is delighted with the funding, said: “We are very pleased that Nationwide Building Society has increased its existing commitment from £27.5 million to £75 million, and welcome on board Barclays as a new lender to the Group, who are providing £35 million.” 

 

“The facility increase, plus the residential lending to shared owners, means that over the next three years our operations will bring in around £127 million of private finance to support affordable housing.”  

 

He went on to say, “Our track record is all about innovation, quality of product and management. If you add to that the financial strength generated by our mixed property portfolio, the outlook for Midsummer is very positive.” 

 

Based in Milton Keynes, the Group owns and manages over 4,000 shared ownership and social rented homes, and is a major player in delivering the government’s housing strategy for the South Midlands. Working closely with growth area key stakeholders such as English Partnerships and the Housing Corporation, Midsummer has successfully secured a four-fold increase in its Social Housing Grant allocation in 2003/4 and is optimistic that its bid to become a preferred partner will be successful.