Yorkshire housebuilder lays foundations for future growth with £50m fund

Yorkshire housebuilder Strata will build 750 homes per year from 2018 after securing a £50m funding package from Lloyds Bank Commercial Banking.

Based in Doncaster, privately owned Strata has 16 live sites across Yorkshire and the East Midlands and directly employs around 120 people.

The company, which reported a turnover of almost £100m in its latest financial results, has a current forward development value of in excess of £500m.

Support for the business’s expansion drive has come from Lloyds Bank Commercial Banking’s mid-markets team in Yorkshire and the bank’s London housebuilding team, which has provided a revolving credit facility, including a £5m overdraft.

The company has also switched its day-to-day banking to the bank.

Julian Davis, financial director at Strata, commented: “Lloyds Bank has worked closely with us to understand our ambitions and has provided a funding package tailored to our requirements. Having this flexible funding in place will enable us to deliver our land acquisition strategy and meet our growth targets with confidence.

“We look forward to working with the bank over the coming years and utilising its expertise to deliver new homes for families across Yorkshire and the Midlands.”

David Hunt, relationship director at Lloyds Bank Commercial Banking, added: “The housing shortage in the UK, coupled with renewed confidence in the property market and the introduction of Help to Buys ISAs, has meant that demand for quality housing, like those Strata provides, has soared.

“Housebuilders have an important role to play in support the UK’s economic recovery, both in developing essential housing stock and providing employment to people across the country.

“The banking facility we have put in place will afford the business the head room and flexibility to activate the next stage of its growth strategy, and we are looking forward to seeing the company add to its already impressive portfolio.”