CBRE completes first debt deal with Housing Association

Team structured two loans totalling £350m

CBRE’s Debt & Structured Finance team, part of CBRE Capital Advisors, has acted as debt advisor to Hyde Housing Association in obtaining two revolving credit facilities (RCF) totalling £350m. NatWest Bank provided a ten year RCF whilst a syndicate of banks lead by Lloyds Bank Plc (including BNP Paribas and AIB) provided an additional seven year RCF.

The two loans are secured against Hyde’s existing portfolio, which consists of 50,000 homes across the UK. This is the first loan CBRE’s Debt and Structured Finance team has originated for a Housing Association.

Anna Wallace, Treasurer, Hyde Housing Association added: “We chose CBRE to help us on this deal due to their ability to cross real estate and the housing sector, as well as strong expertise and wide reach in the banking market. They were central to our negotiations with numerous lenders to form a club deal, and to help us achieve a lending position which we are delighted with. Our new facilities smooth out our repayment profile, reduce our refinancing risk in later years, and have enabled us to fully fund our financial plan for the next five years.”

Housing Associations are the largest owners of property in the UK and so there is a huge opportunity here to work in collaboration with them and understand their strategies. These two loans demonstrate the level of confidence the market has in these organisations and competition from lenders meant we were able to secure competitive pricing and terms.
Steve Williamson, Executive Director and Chairman of Debt and Structured Finance, CBRE