£100m deal will see hundreds of new homes built in Greater Manchester

A housing association has agreed a £100m deal which will see almost 800 homes built in the North West.

Bolton at Home has secured a £100m funding deal, allowing it to build 785 additional homes and for Arcon Housing Group to join the group.

The 18,000-home housing provider has secured £45m in new funding from the Royal Bank of Scotland, in addition to its existing £55m loan facility.

The new agreement includes funder consent for Arcon Housing Group to join the Bolton at Home group and removes some historic loan covenants linked to the stock transfer from Bolton Council in 2011.

The additional £45m funding, along with the existing agreement, will finance the construction of 785 extra homes over the next three years, taking Bolton at Home’s total for the period to 960 homes.

Arcon, which owns and manages 1,200 homes in the Greater Manchester area, recently announced the completion of its move to join the Bolton at Home group as a subsidiary from April.

Edward Mellor, executive director of finance at Bolton at Home, said: “I am delighted to announce that we have secured this additional funding.

“This deal will be a significant boost to our ambition to build much-needed affordable homes in the Greater Manchester area.

“We’d already been working closely with Arcon as part of the Greater Manchester Housing Providers group.

“It has knowledge and skills that complement our own, including a wealth of development expertise.

“This will be invaluable to our joint ambitions to build the affordable homes the region so urgently needs.”

Savills Financial Consultants supported Bolton at Home.

Mike Roche, director at Savills Financial Consultants, said: “Savills Financial Consultants is delighted to have supported Bolton at Home throughout this process.

“The new funding package and necessary permission to allow Arcon to join the Bolton at Home Group will allow the association to fully use its financial clout to deliver its growth strategy and deliver hundreds more affordable homes.”

Nigel Barclay, associate director of housing finance at The Royal Bank of Scotland, said: “We are thrilled to further support the Bolton at Home Group with its ambitious growth strategy.

“We also welcome Arcon Housing Association to the group and look forward to seeing what the two organisations together can deliver for the sector.”