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Inland Homes cuts Cheshunt Lakeside funding costs through refinancing
2nd Dec 2021 11:59
(Sharecast News) - Housebuilder and brownfield developer Inland Homes announced the refinancing of facilities at Cheshunt Lakeside on Thursday, through its joint venture Cheshunt Lakeside Developments (CLDL).
The AIM-traded firm secured consent for 1,725 homes at Cheshunt Lakeside in 2019, together with "significant" employment and community facilities.
It said it had procured a mezzanine loan facility of £14.25m with Homes England on "considerably more favourable" terms than the previous facility, together with a £7.4m infrastructure facility and an additional interest and fees roll-up facility of £2.85m.
The facility would be available until 21 March 2024, with repayment due by 31 December 2026.
Inland Homes said it had also increased its existing facility with Paragon Development Finance by £1.75m, with repayment due by 30 June 2023.
The company said the refinancing with Homes England would reduce CLDL's funding costs significantly.
Further savings would be achieved on repayment in full of the Paragon facility, when the margin charged by Homes England would be reduced.
Separately, the company also announced it was in advanced negotiations with a "major" build-to-rent fund for the development of phase 1b, consisting of 205 homes, with further details to be announced.
Through Inland Partnerships, the group said it was currently constructing 195 homes within phase 1a on behalf of a local housing association, following the sale in 2020.
"We are delighted to have procured this facility with Homes England as well as extending existing facilities with Paragon which will reduce funding costs at Cheshunt Lakeside significantly," said chief executive officer Stephen Wicks.
"We are also pleased to announce that we are in advanced negotiations with a major build-to-rent fund for the development of phase 1b, which will result in a further 205 new homes commencing shortly."
At 1056 GMT, shares in Inland Homes were up 0.74% at 50.37p.
The AIM-traded firm secured consent for 1,725 homes at Cheshunt Lakeside in 2019, together with "significant" employment and community facilities.
It said it had procured a mezzanine loan facility of £14.25m with Homes England on "considerably more favourable" terms than the previous facility, together with a £7.4m infrastructure facility and an additional interest and fees roll-up facility of £2.85m.
The facility would be available until 21 March 2024, with repayment due by 31 December 2026.
Inland Homes said it had also increased its existing facility with Paragon Development Finance by £1.75m, with repayment due by 30 June 2023.
The company said the refinancing with Homes England would reduce CLDL's funding costs significantly.
Further savings would be achieved on repayment in full of the Paragon facility, when the margin charged by Homes England would be reduced.
Separately, the company also announced it was in advanced negotiations with a "major" build-to-rent fund for the development of phase 1b, consisting of 205 homes, with further details to be announced.
Through Inland Partnerships, the group said it was currently constructing 195 homes within phase 1a on behalf of a local housing association, following the sale in 2020.
"We are delighted to have procured this facility with Homes England as well as extending existing facilities with Paragon which will reduce funding costs at Cheshunt Lakeside significantly," said chief executive officer Stephen Wicks.
"We are also pleased to announce that we are in advanced negotiations with a major build-to-rent fund for the development of phase 1b, which will result in a further 205 new homes commencing shortly."
At 1056 GMT, shares in Inland Homes were up 0.74% at 50.37p.