settle, the housing association for Hertfordshire and Bedfordshire, has boosted its balance sheet capacity by £100m by completing what it calls an innovative revaluation of its homes.
The £100m increase to settle’s balance sheet capacity resulted from a ‘deed of variation’ agreement struck with North Hertfordshire District Council – the partner council from which settle’s homes transferred in 2003.
This allowed the revaluation of 90% of settle’s 9,500 homes (Market Value – Subject to Tenancy), resulting in a £100m balance-sheet increase.
New settle investments
settle says it has since used its revaluation to strike a £75m private-placement funding deal with Aviva Investors, which will support the delivery of settle’s new corporate plan commitment to build 1,500 homes by 2024 – 90% of which will be affordable.
Gavin Cansfield, chief executive at settle, said: “While the last six months of the COVID-19 crisis have been tough for our customers and colleagues alike, it is really pleasing to see everyone’s hard work paying off with this positive news on new funding and new affordable homes.
“As our audited annual accounts show, we performed strongly in 2019-20 and saw our surplus increase to £14.64m from £10.48m in 2018-19.”
Cansfield added: “Although the COVID-19 pandemic led to some delayed handovers in our new build homes, our commitment to build 1,500 homes by 2024 remains.
“We are well on track already with 831 homes committed in our development pipeline and further new hires in the development team.
“This ensures we are well-placed to work with our partners in Hertfordshire and Bedfordshire to jointly deliver for our communities.”
settle is currently investing a total of £40m in three key projects that will see more than 200 “much-needed” affordable homes built in Hertfordshire and Bedfordshire.
The three developments are:
- Hitchin Road, Arlesey, Bedfordshire – 30 homes for shared ownership and 28 for rent
- Roker Park, Stotfold, Central Bedfordshire – 39 homes for shared ownership and 23 for rent
- John Barker Place, Hitchin, Hertfordshire – settle’s £20m regeneration of the Westmill Estate in Hitchin
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