“For the last 50 years, we have always worked to create bespoke solutions for our borrowers, and this revolving facility is a natural evolution of the decade-long partnership between Close Brothers and Fernham Homes”
– Phil Hooper – Close Brothers Property Finance
Close Brothers Property Finance (CBPF) is providing Fernham Homes with a £38m revolving credit facility (RCF) to support the delivery of over 400 new homes across Kent. This marks Close Brothers’ first multi-site RCF, covering six new developments with a combined gross development value (GDV) of around £168m.
The facility is designed to suit Fernham Homes’ pipeline of residential projects, offering flexibility and quick access to funds. It will help the SME housebuilder manage cash flow throughout various stages of development, provide a capital buffer against unforeseen delays, and enable the acquisition of new sites. In a difficult economic climate, this access to capital will assist Fernham Homes in navigating market volatility while advancing its projects.
Work has already started at Sutton Valence, Faversham, and Blean using this facility. Plans are in place to begin developments at Yalding, Sandwich, and Wrotham in 2026, with the funding supporting private homes within each scheme.
Fernham Homes, established more than 25 years ago, has completed over 250 new homes in Kent and East Sussex in the past five years. The award-winning housebuilder has a land pipeline of approximately 3,950 homes across the region, with an additional 1,500 in planning. Its team has grown significantly from eight employees in 2022 to 46 experts.
Paul Radley, senior business development manager, and Chiara Caldwell, managing director of structured finance at Close Brothers Property Finance, collaborated with the lender’s credit and underwriting teams to create this tailored facility. It is the bank’s first multi-site revolving credit arrangement.
Phil Hooper (pictured), chief executive officer of Close Brothers Property Finance, said, “For the last 50 years, we have always worked to create bespoke solutions for our borrowers, and this revolving facility is a natural evolution of the decade-long partnership between Close Brothers and Fernham Homes. It has been carefully tailored to provide them with the flexibility to accelerate their pipeline and continue building the high-quality homes for which they are renowned. In what is undoubtedly a challenging market, we are proud to support the long-term strategic growth of our clients.”
Sean Ellis, managing director of Fernham Homes, added, “This represents a cornerstone for the growth of Fernham Homes, providing the financial certainty and flexibility to enable us to scale up our business with pace and take us from delivering 50 homes per year to our target of over 400 annually in the next five years. We’re thrilled Close Brothers have chosen to pioneer this new RCF with Fernham Homes. It is recognition of our growth trajectory and potential of the business. It’s a true testament not only to the Fernham Homes’ 25-year legacy and track record, but also the credentials of our management team and quality of relationships we build with our stakeholders.
“A solution to one of the key challenges faced by SME housebuilders, highlighted in the Government’s recently announced support initiatives, we also hope it can set a positive example of the potential that can be realised in this sector with access to more affordable, flexible and assured finance.”
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