Property group agrees £240m funding support
Harworth has agreed a new and extended £240m debt package that will support the regeneration group’s strategy to double the size of its business over the next five to seven years.
HSBC has joined existing funders Natwest and Santander to provide the financial support.
The five-year package is for a £200m revolving credit facility and a £40m uncommitted accordion option.
Lynda Shillaw, chief executive at Harworth, said: “Harworth’s strong balance sheet and prudent gearing is one of the key enablers of our ambitious growth strategy.
“This new debt package, which adds another established institutional lender to our banking group, will provide Harworth with additional firepower and flexibility as we step into this strategy and deliver our purpose of creating places where people want to live and work.”
It replaces Harworth’s previous facility, which was increased from £130m to £150m last year.
To deliver its strategic plan, Harworth has adopted a target net loan to portfolio value at year end of below 20%, with a maximum year end net loan to portfolio value of 25%.
The group will continue to use site-specific development and infrastructure loans alongside the main banking facilities to support the revised strategy.
