Banner Homes secures new £120m bank facility

New homes builder Banner Homes has announced a new £120m bank facility that will enable the firm to buy more land and plan ahead for the construction of more new homes.

The funding was secured with three major banks, RBS, HSBC and Santander. This four year facility will secure the future growth of Banner Homes and allow the firm to accelerate its land and development operations. In addition Banner's major shareholder has extended its investment loan until December 2015.

Richard Werth, chief executive of Banner Homes comments "This deal, with arguably some of the best names in banking, is a great achievement for the Company and will allow us to accelerate Banner's growth in quality opportunities building on our profitable performance over the last few years. It is a tribute to the success of Banner and the support of our shareholders, that we have achieved these new facilities."

Banner Homes started business in 1975 with the earliest developments being around south Buckinghamshire. Since then the company has grown to encompass three regional operational centres in the Northern Home Counties, the Southern Home Counties and the West Midlands.

Banner Homes is now focused on building new homes in high quality locations with the average selling price achieved by the company for open market homes now well over £600,000.

The Company expects to deliver a turnover of around £100m in its financial year to May 2012 with profits up by 30% on 2011. Banner is focused on continuing this growth whilst maintaining its selective and targeted land acquisition programme.