Bromford Flagship agrees new £100m funding facility

Housing association Bromford Flagship has finalised a new £100m credit line with Royal Bank of Canada (RBC).

The organisation is the result of the recent merger between Bromford Housing Group and Flagship Housing Group, and it owns and manages approximately 80,000 homes.

The Revolving Credit Facility (RCF) increases the group’s total RCF portfolio to £850m, the majority of which is undrawn.

Following the merger of Bromford and Flagship housing groups at the end of February, the funding will help finance Bromford Flagship’s ambitions to increase its development of new homes. It has the ambition to deliver 2,000 homes a year for the next 30 years.

The Tewkesbury-based housing association is already the country’s largest builder of social rent homes, with Bromford and Flagship collectively completing more than 600 social rent homes in 2023-24.

Matthew Rose, Director of Treasury at Bromford Flagship said: “Bromford Flagship wants to be the country’s leading developer of social rent homes over the next 30 years and will need to secure funding from new and existing domestic and international lenders to achieve this.

“This funding gives us additional capacity to secure sites for our own developments, giving us greater control over the design and quality of the homes we build. This allows us to create thriving communities—because when people have high-quality homes and are part of an engaged community, anything is possible.”

The RCF allows for the inclusion of sustainability KPIs to be agreed between Bromford Flagship and RBC at a later date.

Charles McKie, Director of Treasury and Financial Reporting at Bromford Flagship said: “Adding this Revolving Credit Facility to our portfolio will enable us to act swiftly on new opportunities to invest at scale in both our existing and new communities. It will also allow us to fund improvements to our existing homes as we continue our journey to ensuring all our homes have an energy efficiency rating of C or above by 2030 and to becoming a carbon net zero organisation by 2050.”