Mosaic raises borrowing to 195m to fund South-east homes

The east London landlord, formerly New Islington & Hackney Housing Association, will spend the funds on development.

Of the extra £80m, £50m has come from a consortium led by Barclays. The bank has supplied £15m of the new funding, with Newcastle and Derbyshire building societies providing £17.5m each. This increases Mosaic’s loan facility with Barclays to £110m.

Abbey has provided an extra £30m, taking its loan facility with the landlord to £85m.

Both loans will be repayable over 30 years.

As one of the Housing Corporation’s 70 development partners, Mosaic has already received £58m of corporation funding to develop 1000 new homes in the South-east over the next two years.

Mosaic currently manages about 6500 homes.

Ken Youngman, finance director at Mosaic, said the deals with Barclays and Abbey would allow the association to raise its loan facilities again in the next 18 months.

“We’ve got a long-term business plan to build 500 units a year and we still have capacity to borrow more from Barclays and Abbey,” Youngman said.

New Islington & Hackney was renamed Mosaic as part of a £10,000 rebranding exercise in September (HT 24 September, page 12).