Inland Homes agrees new bank loan as ex-Tesco HQ redevelopment progresses

Inland Homes has refinanced part of its bank debt at improved terms and completed the purchase of a 13-acre regeneration project in Hertfordshire on the site of Tesco's former headquarters.

Brownfield specialist Inland has secured a new, five-year £27m debt facility against its development of 86 former Ministry of Defence homes as part of its Wilton Park development in Beaconsfield.

The company said part of the new facility will be used to refinance an existing £18.9m facility at a "significantly lower" interest rate.

The Hertfordshire land, which is situated just outside the north half of the M25 and is expected to be selected as the planned location for the Cheshunt Lakeside "urban village" of up to 1,000 homes, will be funded by £5m of equity each from Inland and its unnamed joint venture partner, with the balance to be financed by bank loans.

All profits from the joint venture, of which Inland will act as the operator, will be distributed in proportion to each party's shareholding in the project.

"As the ongoing housing shortage remains on the news agenda, Inland Homes is excited to be bringing its expertise and experience to a project that will deliver a significant number of new homes, and importantly with the strong support of the local authority" said chief executive Stephen Wicks.

"As part of ensuring the company is best-placed to capitalise on future opportunities and given the favorable borrowing environment, the new debt facility is a further positive step for the company."