The facility will be provided through the government’s ENABLE Build programme to support SME developers across the UK to build residential homes.
The transaction will boost the lending capacity of Close Brothers, which is currently funding the development of more than 7,000 new homes across the UK.
The transaction will support more than £700m of development finance lending.
This is the second ENABLE transaction with Close Brothers, following an ENABLE Guarantee agreement with its Close Brothers Asset Finance division in August. This was a £300m transaction supporting lending to smaller businesses for hire purchase, sale and hire purchase back and leasing facilities.
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Close Brothers to help get ‘Britain building again’
Michael Strevens, managing director for structured financial institutions at British Business Bank, said: “Following the success of our previous ENABLE Guarantee transaction with Close Brothers, we’re pleased to be building our partnership through this ENABLE Build transaction.
“Close Brothers Property Finance has been a key supporter of smaller housebuilders for over 50 years, and this support will enable even more SME developers to deliver the homes our communities need.”
Rachel Reeves, Chancellor of the Exchequer, said: “This agreement between the British Business Bank and Close Brothers marks a significant step in boosting housing supply and supporting housebuilders across the UK. By unlocking up to £700m of finance, housebuilders will have the backing they need to deliver thousands of new homes. It’s a clear example of how we can boost growth, create jobs, and build thriving neighbourhoods.
“We are committed to get Britain building again, with a target of building 1.5 million homes over the course of Parliament. And this partnership shows how we are turning that ambition into action.”
Phil Hooper, CEO of Close Brothers Property Finance, said: “We are delighted to deepen our partnership with the British Business Bank through this ENABLE Build transaction. For over 50 years, Close Brothers Property Finance has been committed to supporting SME housebuilders, the backbone of housing delivery in the UK.
“This agreement significantly enhances our ability to provide the funding these developers need to bring forward much-needed homes, strengthen local communities, and drive economic growth. We are proud to play our part in unlocking housing supply and helping to deliver on the government’s ambition to build more homes across the country.”
The ENABLE Build programme is open to UK incorporated banks, UK branches of foreign banks, asset and asset-based finance providers and other lenders to provide development finance to smaller housebuilders in the UK.
