Avant Homes has secured an enhanced, £200m bank facility as it seeks to fast-track its expansion plans to become a £500m turnover, 2,000 unit developer.
The enhanced revolving credit facility with HSBC, RBS, Santander and Bank of Ireland will see Avant Homes significantly increase new land acquisitions in north east England, Yorkshire, the Midlands and the central belt of Scotland.
Avant Homes has already identified sites to acquire in Glasgow, Newcastle, Sheffield and Nottingham as it builds on the strong momentum generated by increasing demand for the innovative homes that have become the company’s hallmark since the launch of a new strategy following investment from Alchemy Special Opportunities, Avenue Capital and Angelo Gordon in December 2014.
This latest announcement follows an excellent period of trading that saw the company deliver record revenues of £369m in the twelve months to 30April 2017 having achieved 1,636 total completions, up 35 per cent compared with the prior year.
With renewed calls for the UK Government to reenergise the “Northern Powerhouse” project launched in 2013, alongside the expected regional economic benefits which will flow from the development of HS2, Avant Homes’ land investment plan demonstrates the company’s confidence in the UK’s northern regional economies. The Northern Powerhouse international conference held earlier this year identified a clear need to focus on both improving existing housing stock and building new homes in order to deliver the long-term, balanced UK economic growth the Government is hoping to achieve.
In Scotland, the company’s investment in land using the new facility will help redress a shortfall in housing stock where the number of homes being built remains just over 36 per cent below pre-recession levels.
Avant Homes chief executive, Colin Lewis, commented: “The Government must do more to support the cities and regions outside of the south east of England to ensure UK plc is as robust and powerful as it can be.
“Balancing UK economic growth will only become a reality if cities and regions in the north of England and across Scotland can create well-connected communities where people want to live. Our new £200m facility means we can enhance the role we already play in achieving this goal by accelerating our building of more much-needed family homes.
“In addition, this extra financial firepower we now have to invest in land with help us to build more homes in new locations, enabling us to leap ahead on our timeline to becoming a £500m turnover, 2,000 unit housebuilder, whilst also supporting opportunities to open further operating regions in the future.”