Greater Manchester (GM) Housing Investment Fund
The GM Housing Investment Fund gives developers access to funding so they can kick start housing projects that would otherwise be difficult to fund from elsewhere.
The fund is designed to help a full range of residential schemes in all locations across GM and welcomes small and medium sized developers.
To date over £420m has been committed to help deliver more than 5,150 homes at 40 sites across GM, including several sites in Wigan. Whilst the fund reached the £300m milestone after two-and-a-half years, it's open for business using recycled funds and will continue to invest in more homes across the region.
What does it offer?
- Any loan size considered between £500k and £30 million
- Security requirements dependent on project specifics
- Maximum four-year loan term, longer terms considered case by case
- Stretch senior debt and mezzanine finance options available and equity investment will be considered.
To find out more you can contact the Housing Enabling and Development team.
Housing Growth Partnership (HGP)
The Housing Growth Partnership (HGP) is an equity fund set up by Lloyds Bank and Homes England to support the growth of ambitious and entrepreneurial SME housebuilders and to enable the delivery of more homes across the UK.
HGP invests alongside you on residential development projects reducing the amount of money you need to invest whilst improving the returns you make. HGP’s aim is to help you build more homes and grow your business.
They have partnered with more than 40 housebuilders in the past 5 years to support the creation of over 3000 homes and the programme wants to support the delivery of even more homes in the future.
What does it offer?
- It allows you to free up cash so you can spread your money over multiple sites or into other areas of your business
- HGP can support across a number of projects and become a strategic partner to help the growth of your business
- You will make an improved return on the cash you invest when compared to the returns if you were to complete the project yourself
- HGP also employ a group of industry experts who can offer free help and guidance to your business.
To find out more you can contact the Housing Enabling and Development team.
SME Real Estate Lending Fund (RELF)
A joint venture from Homes England and Newstead Capital to support SME housebuilders. The new long-term development finance lending fund has been set up to accelerate change in the housing market by bringing a new lending channel to the SME housebuilding sector. The fund is set to enable the construction of over 5,00 high quality homes.
The Fund is designed to tackle the housing shortage by allowing for smaller sites to be developed. The Fund is intended to encourage the creation of environmentally responsibly projects while supporting the regional SME house building sector.
The Fund is for SME borrowers only, delivery fewer than 2,000 units per annum with a minimum of 3 years’ experience in residential developments.
What does it offer?
- Any loan size from £500k to £10 million or 10% of Total Commitments is above £100m
- Maximum 30-month loan term.
To find out more you can contact the Housing Enabling and Development team.
Greener Homes Alliance
Octopus Real Estate, part of Octopus Group and a United Kingdom specialist real estate lender and investor, has partnered with Homes England, the Government’s housing delivery agency, to create the Greener Homes Alliance.
The new Alliance has committed £175 million, providing both loan finance and expert support to SME housebuilders, enabling them to build more high quality, energy efficient homes throughout England.
The Alliance provides loans of between £1 million and £20 million to finance new SME development projects. Homes funded must achieve a minimum Energy Performance Certificate (EPC) rating of B, and will benefit from increasing interest rate margin discounts as the energy efficiency of the homes increases above this (as measured using the Standard Assessment Procedure (SAP)).
The Alliance is set to support up to 750 new homes as well as equip SME housebuilder with the knowledge and expertise around low carbon construction.
What does it offer?
- Any loan size between £1 million and £20 million. Loans can be up to a maximum of 85% LTC or 65% LTGDV, to maximum loan sizes of £20 million
- Increasing interest rate margin discounts as the energy efficiency of the homes increases
- Free of charge, expert advice from sustainability consultants McBains and Octopus Energy.
To find out more you can contact the Housing Enabling and Development team.