Press Release: 01 August 2016
Pocket agrees a new £45m financing deal with Lloyds Bank to further increase their delivery of affordable housing to London
• £45 million landmark financing deal between Pocket and Lloyds Bank to build affordable housing in London
• This deal reflects the growth of Pocket’s pipeline, delivering over 200 homes in the final quarter of this year alone
• This funding package comes off the back of the strategic investment from Related Companies earlier this year and Pocket’s existing loan from the GLA.
• Deal underscores the commitment that Lloyds Bank have made to support the delivery of affordable housing
Pocket, the award-winning private developer of intermediate housing for singles and couples in London, today announces a landmark financing deal with Lloyds Bank. Pocket, in partnership with the Greater London Authority (GLA) and Related Companies, has raised £45 million financing from Lloyds Bank.
Pocket builds compact one bedroom homes for first time buyers at a discount of at least 20% to the open market. The homes are reserved for those that earn less than the GLA’s income cap for affordable housing, live or work in the borough of the development and don’t own another property. As demand for affordable homes skyrockets, Pocket has doubled its pipeline year-on-year since 2013.
This deal comes at an important time for Pocket and for London. The GLA has made a 10 year loan to Pocket of £26.4m to increase its capability to deliver more affordable homes. At the start of 2015, Pocket managed to attract a 50% strategic investment from Related Companies, one of the largest owners and developers of affordable housing in the U.S. With Lloyds Bank’s support and with Related and the GLA behind it, Pocket believe that it can go on to really help London’s first time buyers who are currently cut out of home ownership.
Marc Vlessing, CEO of Pocket, said:
“We are delighted that Lloyds Bank has chosen to support Pocket’s affordable housing programme. The bank has shown their commitment to first time buyers by supporting Pocket since 2013 and lending to our buyers since 2005.
The London Mayoral “referendum on housing” as the election was named by the successful Sadiq Khan, showed that the need for more housing for ordinary working Londoners is in no way diminishing. With this new deal in place, Pocket can continue our accelerated programme of development to ensure that there is suitable housing for the people who make London tick.”
Graeme Alfille-Cook, Head of Developers, Commercial Real Estate, for Lloyds Bank, said:
“Pocket has a proven track record of successfully bridging the gap between social and private housing. Their commitment to delivering high-quality homes for aspiring property owners who contribute so much to London’s success, mirrors our own strategy to support viable developments that enable our communities to thrive.”