Housebuilder secures £50m funding deal

Cavanna Homes has secured £30m of funding from Lloyds Bank – an increase of 50% on the previous funding arrangement.

The deal marks a renewal of Cavanna Homes’ five-year revolving credit facility with Lloyds Bank, which has been supporting the Torquay-based housebuilder with banking facilities since 2012.

Scott Murray, group finance director, said the new arrangement provided the liquidity to keep the company safe and to support the firm’s future growth plans. “It has been competitively priced reflecting the company’s strong governance and credit position,” he added.

Cavanna Homes is currently building new homes at sites across the South West with three developments in Exeter – Equinox II, Equinox III and Cavanna @ Elm Park.  Properties are also available at Oak Mount, Hemyock, Market Place, Holsworthy and Bellevue, Bude.

New developments are coming soon to North Devon, Dorchester and Bridgwater. 

The firm, which marked its 100th anniversary in 2023, has weathered a challenging period for the housing market, achieving its targeted turnover and profits before tax despite inflationary pressures and supressed demand for new homes.

Paul Collings, relationships director at Lloyds Bank in the South West, said: “We’re proud to be supporting a business that is delivering much-needed housing to the South West, all while prioritising the sustainability of its business operations.

“Bolstering our long-term support of Cavanna Homes means that the business can embark on its path of scaling-up, delivering more affordable and social housing and creating developments that positively impact their communities..”

Murray thanked Cavanna Homes’ legal team at Michelmores and Ashfords for their support.