Magna Housing Group has completed a £161m refinancing deal – one of the final steps in its strategy to rebuild after being placed under Housing Corporation supervision five years ago.
The group was supervised from 1998 to 2000 after allegations of losses on a maintenance contract and overspending on entertainments and perks.

Magna Housing Association – part of the group – has extended its facilities with Bank of Scotland to £117m. The post-transfer housing association will spend the money on development, improvements to properties and general projects.

Magna West Somerset Housing Association, the other asset-holding member of the group, has reduced its facilities to £44m. It has been funded since transfer by Abbey National, Bank of Scotland and Barclays. Large incomes from right to buy, low interest rates and a covenant restricting the area in which it could develop meant it did not need the extra borrowing capacity but was paying to keep it.

Ray Ardrey, group finance director, said: "We have been rebuilding [the group] over the past three years. We have changed the management team and this has culminated in the refinancing."

Source

Housing Today