VIVID has secured £100m from NatWest as part of the bank’s £500m social loan fund, aimed at building more social rent homes across the UK.
The loan has a 10-year term and will support the construction of 450 new social rent homes, providing affordable housing for around 970 people on local authority waiting lists.
David Ball, chief financial officer at VIVID, said: “NatWest’s new social rent linked loan product gives housing associations the financial flexibility to build more homes at social rent levels.
“The overall rate discount being offered is an innovative step change that shows NatWest’s commitment to supporting the Government’s Social Rent led agenda.”
Paul Eyre, head of residential and housing finance at NatWest Group, said: “This agreement has been made possible through NatWest’s dedicated social loan fund which has been ringfenced entirely for the building of social rent housing across the UK.
“It’s part of our ambition to lend £7.5 billion to the social housing sector before the end of 2026.
“It’s the latest loan agreement between NatWest and VIVID following a separate £125 million investment earlier this year, and we’re delighted to continue supporting them in their goals of addressing a housing shortage in the South of England by building almost 900 affordable and sustainable homes, making a big difference for the communities they serve.”
Forhad Ahmed, senior associate, real estate finance security at Trowers & Hamlins LLP, said: “We are delighted to have advised VIVID on securing £100 million from NatWest as part of their landmark £500 million social loan facility.
“This first-of-its-kind initiative demonstrates innovative financing in the social housing sector and will enable VIVID to deliver much-needed affordable homes across the country.”
Anna Clark, legal director at Bevan Brittan LLP, said: “We are so pleased to have once again supported VIVID in completing another landmark loan facility to further assist with the delivery of much needed social housing.”
