South West landlord plans development push after securing £75m government-backed loan

It is the second time the group has arranged borrowing for development in the past 18 months. It agreed a £55m revolving credit facility from Lloyds Bank in late 2023.

Selwood joins a growing list of organisations that have used the AHGS since it was launched in 2021 with an initial £3bn backing. It was topped up to £6bn by the previous government in February last year. 

Under the AHGS, investment firm Venn issues government-backed bonds through its funding vehicle, Saltaire Housing. The money raised is then on-lent to registered providers.

Selwood’s loan was funded by the issuance of further bonds under the AHGS’s existing 2033 bond series.

The sale of the bonds achieved an all-in rate “comfortably inside” 4.75 per cent, according to Venn.

The exact interest rate and term length of Selwood’s loan was not disclosed.

Under the agreement, the landlord will immediately get access to £50m with the option to take an extra £25m at a later date.

Oriane Auzanneau, deputy portfolio manager for the AHGS and managing director at Venn, said: “In a backdrop of considerable market volatility, the scheme continues to provide borrowers ready access to the capital markets.”

She added: “The deferred element and pricing achieved continue to demonstrate the flexibility and value which this brings to the sector.”

In its last reported full year to the end of March 2024, Selwood recorded an increase in surplus to £7.2m despite rising operating and finance costs. It was helped by a 15 per cent rise in turnover to £52.7m.

The group currently has G1/V2 grades with the English regulator, but has yet to be assessed for consumer standards.