Funding Affordable Homes secures £16.5m for trio housing scheme

Social and affordable housing provider Funding Affordable Homes (FAH) has secured a £16.5 million loan from Secure Trust Bank Real Estate Finance for three new housing developments.

The schemes will deliver a total of 214 homes for affordable and social housing.

Two of the developments are on the Isle of Wight - Green Meadows at Freshwater, an Extra Care housing scheme of 75 one and two-bedroom apartments for rent and shared ownership, and Ryde Village, which also comprises 75 one and two-bedroom Extra Care apartments plus 27 two-bed bungalows for older and vulnerable residents.

FAH has agreed 20-year management leases on both schemes with Southern Housing Group, which will provide domiciliary care services in partnership with Isle of Wight Council.

The third development is in Rochdale, where FAH is funding the development of 37 one-bedroom Extra Care apartments for vulnerable adults at Ladybarn, Milnrow. It has agreed a 20-year lease with registered provider Partners Foundation Limited, which will work in partnership with Rochdale Borough Council.

Each development has been designed to address the challenges that come with this growth in the older population and, in the case of Rochdale, the need for specialist supported housing.

Once complete, they will be retained by FAH as part of its investment portfolio.

James Whidborne, head of residential fund management UK at Edmond de Rothschild Real Estate Investment, which advises FAH, comments: “This is another milestone for FAH and more evidence of the increasing appetite from the banking and investor universe for affordable housing as an asset class. We look forward to working with Secure Trust Bank on future deals, as we continue to raise capital and target a portfolio of in excess of £500 million.”

Secure Trust Bank’s real estate team provides lending facilities of £1 million-£45 million to residential and commercial property developers and investors, from small and medium enterprise (SME) housebuilders to UK-based funds.

London-based relationship director for Secure Trust Bank, Matthew-Blaine Young, says the increased activity in the affordable and social housing sector is a result of the current high demand for homes.

He says: “Secure Trust Bank provided three separate development to investment facilities, over five years, to FAH. The facility enables clients to get developments off the drawing board and retain them for income generation and capital appreciation.”

Naomi Keyte, head of sheltered and care services at Southern Housing Group, comments: “We are very pleased to be working with FAH to provide extra care provision on the island. Ryde Village and Green Meadows are two unique services, enabling people to remain independent, enjoy community life and feel safe in their home. The support of FAH has been fundamental in securing these opportunities for island people.”

Michelle Rimmer, joint managing director of Partners Foundation Limited, adds: “Partners Foundation is very proud to be delivering its largest scheme to date with the support from FAH and Homes England. Our aim was to improve the quality of life for tenants and promote as much independence as possible and we feel that this will be achieved with our partners, Future Directions and Rochdale MBC."