Nationwide boosts funding for New Charter Housing Trust Group

Nationwide Commercial has increased its funding to Registered Social Landlord (RSL) New Charter Housing Trust Group (NCHTG) by £70m to £170m, as part of a thirty year term facility. The new arrangement will in part allow for an extensive refurbishment programme across the group’s portfolio of low rise properties in the Greater Manchester area.

NCHTG is a group of companies established specifically for the purpose of accepting the transfer of Tameside Metropolitan Borough Council’s (TMBC) housing stock in March 2000. Nationwide arranged the finance for the transfer, which at the time was the first metropolitan housing transfer and the largest voluntary transfer in the UK, with almost 16,500 dwellings transferred. Since then, some tenants have exercised their right to buy but NCHTG has planned a development programme to build more than 500 additional homes. They will also be providing new key worker accommodation in conjunction with Tameside General Hospital.

The new facilities will support this activity while restructuring the financing of the scheme, reducing the existing syndicate of lenders from five to two. Nationwide Commercial remains the largest funder, having increased its funding from £100m to £170m. The loan facility is flexible enough to incorporate potential further funding.

Mark Webster, Head of Housing Finance, Nationwide Commercial, said: "We are delighted to be able to help NCHTG advance its ongoing social housing development, and this deal has been made intentionally flexible so it can mould around the group’s needs. We have been involved since day one, and today’s new loan facility is further evidence of our continuing commitment to the consortium.”

Martin Frost, Deputy Group Chief Executive of New Charter Housing Trust Group, said: “The extent of our progress over the last few years is recognised by Nationwide. It has real confidence in the way that we do things. The further facility of £20m available to us will mean more new development over the next three years. As well as growth away from our traditional trading area, we have an innovative link up with Tameside General Hospital to provide new key worker homes for rent. Funders recognise the risk to them has been reduced significantly, and we've benefited. It's a really positive reflection on the work we've done.