Pocket Living has secured a new £100m senior debt package with Lloyds Bank, which will drive the continued delivery of affordable homes, specifically for London’s first-time buyers.
This is Pocket’s third facility with Lloyds, the developer’s principal senior lender, and the bank has funded more than 1,000 Pocket Living homes to date.
Lloyds Bank’s initial commitment to the debt facility of £24.2m will fund Pocket’s affordable development at Sheepcote Road in Harrow.
The 100% affordable scheme is expected to complete in August 2024. It will deliver 149 one-bedroom homes that will be available at a 20% discount to market value to local first-time buyers living and working in Harrow.
The development forms part of a wider commitment from the housing developer to deliver a further 1,500 homes over the next five years, many of which Pocket intends to fund through the accordion feature in the Lloyds Bank facility.
The main contractor at Sheepcote Road is Legendre UK, which is a subsidiary of Groupe Legendre, a large French real estate development and construction business.
As part of the funding for Sheepcote Road, Pocket has also signed an agreement with Legendre UK to provide an unsecured loan of £2.5m to fund the start of the construction. This collaboration is the first of its kind for Pocket and will closely align the organisations’ commercial interests.
The Greater London Authority will continue to provide land and planning funding ahead of Lloyds Bank funding the remainder of the construction.
Paul Rickard, chief financial officer at Pocket Living, said: “We have built more than 1,000 first-time buyer homes with Lloyds Bank, and this new funding not only allows us to build on that with up to a further £100m in development funding, but also introduces important new flexibilities that allow us to partner in a new way, including with Legendre UK.
“With this vote of confidence and by introducing new ways of working in response to the current market challenges, we will be able to deliver even more affordable homes for London.”
Sam Shah, director and alternative residential lead at Lloyds Bank, said: “We are proud to support Pocket Living to create affordable, quality housing, making buying a home in London accessible for more people, particularly first-time buyers.”
Thomas Vandecasteele, managing director at Legendre UK, added: “As the second of its kind for Legendre UK, this collaboration underscores our unwavering commitment to the UK market. Our solution-focused approach and dedication to working closely with our clients are clearly reflected in this partnership.”
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