Affinity and Genesis become Englands biggest RSL borrowers

Two of England’s biggest housing associations are lining up deals to borrow a total of £1.1bn this year – the largest loans ever taken out by a registered social landlord in England.

West Sussex-based Affinity Homes is planning a refinancing deal that will increase its loan facilities from £450m to £600m “by Christmas”.

And north London’s Genesis Housing Group is set to borrow £500m for its development and regeneration programmes.

Both deals would eclipse the £420m refinancing package agreed last summer by Circle 33, but would still fall short of the £725m facility arranged two years ago by Glasgow Housing Association.

Mark Washer, finance director at Affinity, said: “We are aiming to consolidate the debt from the different parts of the group into one package. This is one of the obvious benefits of the merger [of Downland and Affinity housing associations in 2003].”

Washer, whose group manages 28,000 homes and currently has 2000 homes in development, declined to name which bank the £600m facility would be with. Affinity plans to build 1000 homes each year with the new facility.

Genesis, whose members are Paddington Churches Housing Association, Pathmeads Housing Association and Sutherland Housing Association, said the deal was with four “leading funders” but would not name them. The deal should be finalised by July.

Half of the funding will refinance existing loans, including £25m for east London’s Springboard Housing Association, which will join the group on 1 April.

Some of the remaining £250m will be used to fund the 25,000-home group’s two-year development programme, which will involve the construction of 3000 homes.

The loan was negotiated by Genesis’ treasury company GenFinance, which was established this month. GenFinance negotiates loans on behalf of all its members, on the same terms for all.

Anu Vedi, Genesis’ chief executive, said: “We have managed to secure better rates than the strongest group members could have achieved on their own before.”

He added that GenFinance would provide the group with the “properly structured and competitive financing arrangements” needed to compete with private developers for the government’s development grant pot.