Redrow Increases Credit Line as U.K. Property Market StrengthensTom Freke
Redrow Plc, a U.K. homebuilder, increased its credit line to 250 million pounds ($394 million) amid signs the country’s property market is gaining strength.
The company signed a 4 1/2-year loan to replace an existing 200 million-pound facility, according to a statement. The debt was provided by Barclays Plc, HSBC Holdings Plc, Lloyds Banking Group Plc, Royal Bank of Scotland Plc and Banco Santander SA.
“This larger facility gives the group debt capacity for further investment in land as it continues to grow,” according to the statement from the Flintshire, U.K.-based company. “The upfront and ongoing costs of the new facility are lower than the previous facility.”
Redrow is raising debt as government measures to boost mortgage availability fuel demand for housing amid a recovering economy. A gauge of house prices in the nation rose to the highest in almost seven years in August, the Royal Institution of Chartered Surveyors reported on Sept. 10.
Barratt Developments Plc, the U.K.’s largest homebuilder by volume, obtained about 850 million pounds of loans in May. It posted increased full-year profits today and said it will pay shareholders a dividend, the first one in five years, according to data compiled by Bloomberg.