Bewley Homes has extended its banking facility to £110m as the business underpins its expansion plans for the next three years.
The award-winning housebuilder, celebrating its 30th anniversary this year, has signed an increased credit facility with HSBC UK Bank plc (HSBC) and Lloyds Bank superseding its previous facility.
With over 350 schemes built over three decades, Bewley Homes has ambitious plans to increase turnover from £155m in 2021 to circa £225m by 2024. The arrangement will give Bewley Homes increased liquidity and capacity to grow the business, including planned expansion into adjacent geographical areas.
Bewley will also utilise the funds to establish new sites, build a strong land bank and further strengthen all areas of the business to drive its expansion plans.
The additional funding will also help Bewley work towards the climate change challenge of achieving zero carbon on sites by 2030. Its teams are exploring a number of innovative solutions to reduce the businesses’ impact on the environment.
The company is working to deliver greener more sustainable schemes by investing in a number of different technologies including PV panels, electric vehicle charging points, air-source heat pumps and rainwater harvesting systems.
Terry Bacon, Financial Director at Bewley Homes, said: “This is an important milestone for the business. We are delighted to have raised £110m of further investment under an improved security structure and to continue working with Lloyds Bank whilst developing a new long-term relationship with HSBC. This funding will provide the business with the capital required to meet our ambitious growth plan and environmental targets over the next three years.”
Andrew Brooks, Managing Director at Bewley Homes, added: “This has been a strategic decision to increase liquidity into our operation. It’s an exciting time for Bewley Homes as we plan for the next few years. We have a great team, fantastic product and a recognised brand in the South of England built up over 30 years.”
Andrew added: “We will be looking to further strengthen all areas of the business – operational, financial and IT systems, investing in new technology as well as the senior management team.”
Joseph Worland, Associate Director, Housing Corporate & Institutional Coverage, commented: “Lloyds has worked with Bewley since 2015 and in that time we have seen the business mature into the leading regional housebuilder that it is today. We are delighted to continue providing our support as Bewley enter a period of ambitious, sustainable growth, and it is testament to the strength of the business that they have been able to enhance the bank group in the process.”
Hugh Taylor, Head of Housing, HSBC, commented: “We are delighted to establish a new relationship with Bewley Homes, providing funding alongside Lloyds Banking Group. We look forward to supporting Bewley to achieve their goals.”
Chris Wall, Partner at DAC Beachcroft advised Bewley Homes during the process. Chris commented: “We’re delighted to have advised Bewley on its refinancing. The new facility provides an updated security structure that better aligns with the day-to-day operation of Bewley’s business and facilitates the company’s move away from GBP LIBOR to SONIA ahead of the upcoming GBP LIBOR cessation at the end of this year. It’s great to expand the firm’s relationship with Bewley Homes beyond core real estate work.”