The agreement, which will help Futures build more than 1,000 new homes by 2020, sees loans refinanced from existing partners Newcastle Building Society, RBS and Nationwide Building Society.
A further £50 million has been borrowed over 5 and 10 years from the latter two lenders, with each providing £25 million.
In addition, new partner Lloyds Bank Commercial Banking has worked with Futures Housing Group to make £3.5 million available over 25 years.
This will allow the 9,000-home East Midlands-based housing provider to establish a development subsidiary to build homes for market sale.
It is the landlord’s biggest-ever housebuilding programme. Ian Skipp, Futures Housing Group’s Strategic Director of Finance, said, “Unlocking the funding is a major step forward for us and the communities we work in.
“It means we can significantly enhance the range of property types we offer to customers, helps fund our commercial development plans and contributes to solving the UK housing crisis. It is a great indication of our ambition, our confidence and our appetite to grow and enter new market places and we’re really excited about what the future holds for us and our customers.”
A total of £3.5 million will be used to directly fund homes for outright sale as part of Limehouse, the commercial development arm of Futures. Profits made from house sales will be re-invested back into the Group to support its core business as a Registered Housing Provider.
Ian Toal, Chairman of the Futures Housing Group Board, said, “We are delighted to have finally secured this significant funding package to meet our ambitions to grow the organisation by diversifying our tenure offering.
“A number of people have worked very hard over the last 18 months to research and analyse the risks and benefits of refinancing and I believe we have an excellent arrangement in place to meet our ambitions.”
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