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PA Housing has secured a £185m funding deal with four lenders that will help deliver its longer-term affordable home development plans.

The deal involves two existing lenders – Barclays (£50m) and Santander (£25m) – and two new lenders – Sumitomo Mitsui Banking Corporation (£60m) and HSBC (£50m).

The cost of funds from Sumitomo Mitsui Banking Corporation (SMBC) is linked to the social impact of PA Housing’s work – including a margin discount mechanism linked to achievement of tenancy sustainment targets.

The deal has been negotiated over a number of months and was scheduled to complete now, with PA Housing confirming the terms agreed prior to the current COVID-19 situation were maintained.

Under its current business plan, PA Housing plans to build at least 500 affordable homes each year in London, the South East and the Midlands.

Simon Hatchman, Executive Director – Resources at PA Housing said: “Clearly we have concluded this long-standing deal under circumstances no-one could have predicted. 

“As a social landlord with 24,000 homes, our focus is entirely on delivering essential housing services to communities in London, the South East and the Midlands and supporting customers through the COVID-19 pandemic.

“We are very grateful to our funding partners for working flexibly with us in the current circumstances to ensure this deal was completed. 

“Although new build construction is paused at present, once the COVID-19 crisis has passed, PA Housing plans to continue delivering more much-needed new affordable housing and tackling the national affordable housing shortage.”

Hatchman adds that the association is able to ensure no evictions due to rent arrears during the crisis.

David Glover, Relationship Director, Barclays Corporate Banking said: “Barclays has a strong and longstanding relationship with PA Housing and for us to provide them with further funding to help deliver their longer-term plans to build more affordable homes was an obvious fit with our ongoing commitment to the social housing sector in the UK. 

“We continue to work with our clients as they develop homes that provide much-needed shelter, and support, to those in our communities.”

Alistair Moffat, Relationship Director, Housing Finance, Santander added: “Santander is delighted to provide this increased facility to support PA Housing’s ongoing development programme. 

“We have enjoyed a good relationship with PA Housing for 25 years and look forward to continuing to play a part in their future growth.”