HANOVER Scotland will continue the development of up to 60 affordable homes annually after securing a new funding package from Royal Bank of Scotland.
Managing approximately 5,000 properties throughout the country, Hanover also provides telecare, community alarm and call centre services for more than 40,000 people.
With the Covid-19 pandemic resulting in many planned housing developments being paused or delayed, Royal Bank of Scotland revealed it stepped in to convert an existing £20 million term loan into a revolving credit facility, allowing more flexibility for deployment and use of the funds over a longer period of time.
The new SONIA terms are a first for both Hanover and the bank’s Glasgow team, who arranged the switch.
Royal Bank of Scotland said this flexibility will be ‘essential’ in re-starting delayed projects. Areas set to welcome developments include Buckie (31 units), Elgin (45 units), and Drymen (15 units).
Donna Henderson, director of strategic finance at Hanover Scotland, said, “The new SONIA terms offered to us bring a much-needed flexibility when we’re faced with temporary site closures, delays and adapting to working in a safe, socially distanced manner on-site. The bank’s support has enabled us to extend our allocation of the funds, which can be used over nine years instead of the 12 months initially agreed. This has been vital in ensuring the planned developments can continue to be progressed, allowing us to bring high quality, affordable homes to more people in Scotland. We’re grateful for the bank’s swift work, alongside our solicitors TC Young, and our treasury advisors, ATFS, in completing the deal.”
Alan Newlands, relationship director at Royal Bank of Scotland, added, “Throughout the past 10 years, we’ve worked with Hanover Scotland to realise their ambitions to provide crucial services within the community – developing innovative homes with pioneering, progressive models of quality care to the elderly. With the pandemic presenting an ever-changing landscape, we sought to offer the team funding that suited the ‘new normal’, allowing them to continue with pre-planned developments. We’re delighted to be a part of their story – through them, we are proud to play our role in helping people, families and businesses to thrive.”