North East housing association Bernicia has announced plans to construct up to 1,000 affordable homes after securing £100 million in funding. The Ashington-based organisation, which manages 14,000 properties across the region, obtained the loan from Barclays Bank. Alongside a refinanced £20 million revolving credit facility, this funding will support a five-year strategy launched in April.
Competitive Bidding Process
Bernicia conducted a competitive process that drew interest from multiple banks, with Barclays ultimately providing the most favourable package. Janette Longstaff, executive director of Finance at Bernicia, stated: “The support shown by the Barclays team reflects their ongoing confidence in Bernicia, our business, people, and our ambitious plans. Securing this new £100m facility adds further strength and capacity to Bernicia and will support us in the delivery of our new corporate strategy.”
Investment in Communities
Over the strategy period, Bernicia plans to invest £400 million in homes, neighbourhoods, and communities. Longstaff emphasised that well-structured, competitively priced debt is crucial for achieving these ambitions. “We were able to secure highly competitive terms from a strong field of lenders. Barclays offered the best overall package, and we're delighted to be extending our relationship with them,” she added.
Advisory and Legal Support
Centrus advised Bernicia on the new facility, which is structured across two tranches – a seven-year and a ten-year. Brian O’Connor, relationship director at Barclays, commented: “We are delighted to have supported Bernicia with £100m of new funding, strengthening their ability to invest in communities across the North East. This new funding will support the delivery of up to 1,000 new affordable homes over the next five years, helping to address critical housing need. A great example of partnership driving real social impact.”
Tom Archer, director at Centrus, added: “Bernicia is a fantastic organisation to work with, and this is a great outcome – well-structured loan and hedging facilities, at highly competitive pricing. We're delighted to be supporting Bernicia as they look to deliver on an ambitious and important strategy for the North East.” Legal counsel was provided by Naomi Roper, partner in the banking and finance team at Penningtons Manches Cooper.
