Karbon lays foundations with £200 million loan

A North East housing association is boosting its development pipeline and property investment plans after securing a major financial boost.

Newcastle-headquartered Karbon Homes has secured £200 million in new loan facilities from Santander, HSBC and Nationwide to support its five-year ‘Stronger Foundations’ strategy. 

Bosses say the funding will help deliver new housing and improve existing stock across the North East and Yorkshire, where the association manages more than 34,000 homes.

Scott Martin, executive director of resources at Karbon Homes, said: “A chronic shortage of affordable housing in the North East and Yorkshire, paired with a need to ensure existing affordable homes are of the highest quality and our communities are supported, means investment in our sector has never been more important.

“We’re pleased to be working with HSBC and Nationwide as new funding partners, and are grateful for the continued support of Santander, which has been a key financing partner for a number of years.

“This new liquidity will help ensure we have the financial capacity to deliver our strategy, so we can continue to build strong foundations for life for more people across the North.”

David Whelan, relationship director, social housing at HSBC UK, added: “HSBC UK are delighted to form a new lending relationship with Karbon Homes and our new facility will help support the development of new homes alongside important investment in existing homes for the benefit of its customers.

“Karbon is a key name we have been tracking for several years, and this facility expands our growing sector presence and support in the North of England.”

Karbon was supported through the process by treasury advisors Savills Financial Consultants, with legal support from Trowers and Hamlins LLP.

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