29th Oct 2018 18:06
LONDON (Alliance News) - St Modwen Properties PLC on Monday said it has signed a new GBP75 million loan agreement with the Homes England Home Building Fund.
Homes England is the UK government's new housing delivery organisation aimed at helping to deliver 300,000 homes per year in the next five years. The initial maturity of the loan is seven years, which can be extended to 10 years with the consent of Homes England.
This loan is in addition to St Modwen's GBP475 million refinancing of its revolving credit facility, and the company said the additional GBP75 million will "accelerate the delivery of homes and services land" within its portfolio.
The loan margin is in line with that of its revolving credit facility and increases St Modwen's debt maturity to 3.7 years from 3.3 years.
"This financing further strengthens our resources whilst reinforcing a key relationship with Homes England, with whom our strategic objective to grow our residential and housebuilding business is strongly aligned," said St Modwen.
Shares in St Modwen closed up 1.2% at 371.00 pence.
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