L&G’s suburban BTR business secures £150m loan

Legal and General’s Suburban Build-to-Rent (LGSBTR) business has signed a £150m five-year revolving credit facility to help finance its pipeline of 1,000 BTR homes. The loan has been backed by HSBC UK, Barclays and Natwest, and according to LGSBTR, will help to address the “significant demand” for quality rental housing across the UK. It follows its recent partnership with Cala Homes on the exchange of 107 homes at Buckler’s Park, Crowthorne, in the South East of England. This was the first forward funding transaction between LGSBTR and major homebuilder Cala, both of which are owned by Legal and General Capital. LGSBTR works to build homes in areas connected to schools, transport infrastructure and key amenities. The homes have features such as “exceptional” build quality, home offices for flexible working, and access to more extensive outdoor space. It noted the SBTR platform is aiming to be operationally carbon net zero from 2030, in line with L&G’s wider commitment towards sustainability. Jane Sullivan, finance director, Suburban Built To Rent – Legal and General Capital, said: “To have secured a facility of this size in such a challenging credit environment is testament to the merit of the product that SBTR is delivering, as well as the strength of relationship with our banking partners. “Now more than ever there needs to be an affordable rental option that provides a viable choice. At LGSBTR we are determined to meet that need with high quality, well managed and specifically designed properties. LGSBTR are delighted to be working in partnership with HSBC UK, Natwest and Barclays, with this loan facility being the vital next step in helping us to deliver our mission, addressing the shortfall in high quality affordable rental properties.” David Reid, managing director, Suburban Built To Rent – Legal and General Capital, added: “Committed to creating sustainable and healthy communities for our customers, we have established an internal Healthy Communities Committee, recognising the homes and communities we create can play a significant role in addressing health inequalities in future. This Loan facility will support this ambition and help us to deliver a new choice of healthy homes for renters.” Michael Goode, director and BTR lead - NatWest, said: "We are delighted to support Legal & General in bringing much needed, high quality, professionally managed accommodation to the private rented sector. We believe the structural fundamentals will support single-family BTR in becoming a leading UK investment sector, as has been demonstrated in more mature rental markets overseas." Dan Wright, head of Housing – HSBC UK, concluded: “HSBC UK is committed to helping its clients accomplish their social responsibility goals. The provision of high-quality affordable housing not only makes good business sense but more importantly will have a big impact on our communities.”

L&G’s suburban BTR business secures £150m loan

The loan was backed by HSBC UK, Barclays and Natwest, and according to LGSBTR, will help to address the ‘significant demand’ for quality rental housing across the UK

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