(Bloomberg) -- Care home and retirement housing firm Anchor has borrowed £85 million ($112.5 million) from Legal & General Assurance Society Ltd. to build affordable housing in the UK after the government promised to dramatically boost supply.
Anchor plans to build at least 500 homes a year on average for 10 years, according to a statement seen by Bloomberg News.
Banks including Investec Bank Plc. and Shawbrook Bank Ltd. have said they expect to see more borrowing to increase the supply of new homes following a pledge by newly-elected UK Prime Minister Keir Starmer to build 1.5 million new homes over the next five years.
The £85 million has been drawn from a so-called shelf facility, under which a company and lender agree to a set amount of total borrowing and the company decides when to draw the debt. The senior secured note with a 15 year tenor totals £100 million. L&G’s asset management division initially provided Anchor with £15 million in February.
The asset management division invested in the transaction on behalf of Legal & General Institutional Retirement.
Anchor manages 54,000 homes for both rent and sale to people aged at least 55, in more than 85% of England’s 317 local authorities, according to the firm’s website.
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