New chief executive Martin Kelly announced at the Bradford-based group's annual general meeting that B&N, until now a regional player in the North with some homes in Kent, plans to become a national influence within a decade.
It will plough £100m into new homes, a reversal of its recent policy of concentrating on management. Kelly said this was essential if B&N was to offer a complete service in regeneration areas where replacement housing is needed. He stressed that most of the expansion will be in areas where the group is already active.
The investment package also includes £100m for healthcare facilities, mostly in partnership with primary care trusts.
Another £100m will go on acquiring estate and full transfers, mostly in areas where the group already holds stock. The remaining £85m is earmarked for the modernisation of existing homes. The group has 11,500 rented homes within its total stock of 14,000.
Kelly said about 2000 homes needed immediate intervention to stabilise the local community. Some of these may be demolished.
The group is actively seeking stock swaps with other associations in some areas to rationalise management.
The £385m will come from refinancing the group's portfolio. Kelly said B&N's existing loans will tail off dramatically over the next 10 years. Strong projected revenues, especially from the commercial side of the business which includes PFI schemes, should cover the cost, he said. "Last year our policy was to wait for our loans to run out. Now I am saying we must get the ball rolling, take out equity and plough it into our new strategy," he said.
Source
Housing Today
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