Tilia’s sustainability-linked loan is expected to enable the house-builder to expand its landbank to put up more than 1,250 units a year.
The funding will also support Tilia Homes’ five-year societal goals, including reducing waste by 30% and doubling trainees.
Chief operating officer Philip Chapman said: “Land remains the lifeblood of our business and this agreement with HSBC UK and Homes England will allow us to significantly enhance our already active land acquisition programme with greater focus, enabling our teams to continue to secure the right development opportunities in the right locations. This deal builds on the continued support of our committed shareholder and offers further stability and financial firepower.
“We strongly believe that sustainability is not just a goal, but a necessity and we are embarking on a journey towards operational net zero, going beyond what is required by regulation. Within this we continue to explore new ways to incorporate innovative technology and materials into our designs to boost energy efficiency, working with industry partners through initiatives such as the Zero Bills homes powered by Octopus Energy at our flagship Landimore Park development, in Northampton.
“This funding agreement reinforces our commitment to put both people and the planet at the heart of our development and we are delighted to have the confidence of HSBC UK and Homes England as we continue on our sustainability journey.”
Tilia Homes is what used to be Kier Homes. It was bought by private equity giant Terra Firma in 2021, which paid Kier £110m for the business.
Homes England is a government agency with a remit to accelerate the pace of house-building and regeneration.
Explaining why Terra Firma warranted taxpayers’ supported, Homes England chief investment officer Marcus Ralling said: “This is a great example of how Homes England and the sector can work together to boost the delivery of affordable, quality homes that people want and need. Our resources are here to help support a diverse market where home builders of all sizes, including SMEs, can deliver for communities. This funding will support Tilia to continue to build quality houses, up to 30% of which are expected to be affordable, with a much-needed focus on sustainability.”
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