Radian Group is pleased to announce we have raised third-party financing for our joint venture with Thakeham Homes in West Sussex. The development in Pease Pottage is predominantly a residential site and will provide 619 new homes, 433 of which are for private sale.
Barclays, one of our core lenders, has provided a £16m non-recourse development facility to the joint venture entity on attractive terms. This will support the construction of the first phase of development at Pease Pottage, which involves 156 homes. Detailed design work for the remaining phases is underway, with the secured financing enabling the progression of this.
In November 2019 we formed a partnership with Yarlington Housing Group and this deal represents the first major financial transaction for the new organisation. Together, we can build more homes and support the communities where we work by facilitating access to employment opportunities, training and support services.
Securing this finance demonstrates the impressive capabilities of our organisations coming together as one.
We have been working with Centrus on the structuring of the financing for the project since early 2019 and examined a number of potential funding routes before selecting Barclays. Vimal Gaglani, Director of Treasury at Radian Group, said:
“This is an attractive, sizeable scheme in a great location and an important element of our development programme. Thakeham brought us the scheme, along with detailed market experience in the relevant area, and we are pleased to be working with them on it. Centrus’ expertise has been invaluable in terms of aligning the structure with the wider corporate finance objectives of the association.”
Jonathan Clarke, Managing Director of Centrus, said:
“We have seen a number of clients look at third-party development finance, but this is one of the only two development finance transactions we closed in 2019 as associations are often cautious of the cost and complexity. This transaction is structured to optimise loan drawings versus commitment fees and other transaction costs, building on the existing relationship with Barclays and supporting Radian Group and the joint venture itself from a capacity and risk perspective.”
Devonshires provided legal advice to Radian Group and Gowling WLG was legal adviser for the joint venture. Pinsent Masons was legal adviser to Barclays.