The new loan facility will enable the homebuilder to expand its landbank to deliver more than 1,250 quality homes each year, while aligning with its long-term sustainability targets and reinforcing the developer’s commitment to reduce its carbon impact, create a better workplace for its people and make a positive difference in the communities in which it builds.
Specifically, the funding will support Tilia Homes’ pledge over the next five years to further reduce the operational emissions in its homes by more than 70%, lower the total tonnage of construction waste (per 100m2 built) by more than 30% and double the number of employees on training courses with an external qualification to address the skills shortage in the construction industry.
Commenting on the agreement, Philip Chapman, Chief Operating Officer for Tilia Homes, said: “This is a fantastic achievement and a proud and exciting milestone for Tilia Homes. Land remains the lifeblood of our business and this agreement with HSBC UK and Homes England will allow us to significantly enhance our already active land acquisition programme with greater focus, enabling our teams to continue to secure the right development opportunities in the right locations. This deal builds on the continued support of our committed shareholder and offers further stability and financial firepower.
“We strongly believe that sustainability is not just a goal, but a necessity and we are embarking on a journey towards operational net zero, going beyond what is required by regulation. Within this we continue to explore new ways to incorporate innovative technology and materials into our designs to boost energy efficiency, working with industry partners through initiatives such as the Zero Bills homes powered by Octopus Energy at our flagship Landimore Park development, in Northampton.
“This funding agreement reinforces our commitment to put both people and the planet at the heart of our development and we are delighted to have the confidence of HSBC UK and Homes England as we continue on our sustainability journey.”
Marcus Ralling, Chief Investment Officer at Homes England, said: “This is a great example of how Homes England and the sector can work together to boost the delivery of affordable, quality homes that people want and need. Our resources are here to help support a diverse market where home builders of all sizes, including SMEs, can deliver for communities. This funding will support Tilia to continue to build quality houses, up to 30% of which are expected to be affordable, with a much-needed focus on sustainability.”
Joe Bailey, Relationship Director for Real Estate Finance at HSBC UK, said: “We are delighted to provide a new sustainability linked funding package to Tilia Homes via our partnership with Homes England, supporting their growth strategy to deliver over 1,250 homes each year.
“Tilia Homes has a strong pipeline of sites across the UK and the new funding package will help the company accelerate the delivery of high-quality housing across the communities it serves.”
Tilia Homes is owned by Terra Firma, the European investment firm.
