Swan signs 295m refinancing deal to fund regeneration

An Essex-based housing association has signed one of this year’s largest refinancing deals.

Swan Housing Association announced a £295m deal with four banks last Friday.

Under the deal, Royal Bank of Scotland will lend an extra £82.5m, Abbey £82.5m, Britannia £82.5m and Lloyds TSB a further £47.5m.

The money, which the association predicts will last two to three years, will be spent on its regeneration work in east London and on future stock transfers.

Swan is preferred partner to take over and regenerate eight estates from Tower Hamlets council in east London. A ballot is taking place on one of the estates – Crossways in Bow – so Swan will hear whether the partial transfer will get the go-ahead from residents over the next few weeks.

The new loan deal is nearly double Swan’s previous £151m facility agreed three years ago, which was spent on new build projects in Essex and east London, including the £35m regeneration of the Five Links estate in Basildon. The association may look to borrow more money in a year’s time to fund new developments.

Swan, which got £36.5m of Housing Corporation funding as one of the quango’s development partners, covers two of the government’s four housing growth corridors – the Thames Gateway and the M11 corridor.

The housing association also has two contracts for healthcare worker accommodation with NHS Estates and is working on a third. However it has no current plans for more NHS work.

Swan’s chief executive, John Synnuck, said: “At the end of the day we are a housing provider. That is the mainstay of our business but where it makes business sense we are keen to add NHS schemes to our portfolio.

Swan is also bidding for a £20m to £30m regeneration contract in Enfield and is one of the final two bidders for a Newham council PFI contract. Synnuck said: “We work in Essex and east London and are not looking to expand geographical area as we see the opportunity to meet housing need in this area.”