Adra Secures Major £65 Million Funding Deal with NatWest to Boost Social Housing Delivery
The largest housing association in North Wales, Adra, has announced a significant £65 million funding agreement with NatWest to support the construction of new social housing across the region. This substantial financial package comprises a £20 million social loan and a £45 million refinance arrangement, marking a pivotal step in addressing housing needs in North Wales.
Pioneering Social Loan Product
Adra has achieved a notable milestone by becoming the first Welsh housing association to complete a transaction using NatWest's innovative social loan product. This financing tool is specifically designed to facilitate the development of properties available for social rent, ensuring affordability for residents. The association, which was established in 2010 following a stock transfer from Gwynedd Council, currently manages more than 7,000 homes and serves over 16,000 customers throughout North Wales.
Commitment to Sustainability and Energy Efficiency
Rhys Parry, director of resources at Adra, emphasized the importance of this funding in accelerating the organization's development programme. He stated that the majority of new homes will achieve an Energy Performance Certificate (EPC) band A rating, guaranteeing high standards of energy efficiency and long-term sustainability. Parry also highlighted the extension of sustainability-linked loan metrics to their term loan, reflecting a strong partnership with NatWest and a shared dedication to Environmental, Social, and Governance (ESG) priorities.
Support from Financial Experts
Martin Skinner, director of housing finance at NatWest, described the transaction as significant for both Adra and the wider Welsh housing sector. He noted that it demonstrates how well-structured finance can directly support the delivery of high-quality, energy-efficient homes on a large scale, while aligning with long-term ESG goals. Treasury advisers Savills Financial Consultants played a key role in supporting Adra throughout the funding process.
Alex Morgan, director at Savills Financial Consultants, commented that this funding provides Adra with the certainty and flexibility needed to advance its development plans rapidly. The financial structure is designed to align long-term investment with growth and sustainability objectives, ultimately contributing to the provision of much-needed affordable homes across North Wales.
