Irwin Mitchell's Banking Team Advises On Multi-Million Pound Deal

Urban regeneration specialist, MJ Gleeson plc, has agreed a funding package of up to £40m with Lloyds Bank Commercial Banking to accelerate its growth plans.

The business, which was founded in Sheffield more than 100 years ago, specialises in building affordable housing on brownfield land in the North of England. The business, which employs more than 300 people and provides employment for many more tradesmen and contractors across the UK, has offices in Sheffield, Wakefield, Bury, Tees Valley and Chester-le-Street, with plans to open a Liverpool office in the next few months. 

The funding, which comprises of a £20m revolving credit facility and a £20m accordion, will support the expansion of the company’s geographic footprint to 50 sites, helping the business achieve its aim of selling 900 homes by summer this year, up from 750 in 2015.

Ongoing demand for affordable housing has helped deliver revenue of more than £110m for the company in financial results released last June, up from £80m the previous year.

Gleeson is unique in selling almost wholly to first time buyer owner-occupiers and its work on redeveloping sites, which have often been unused or derelict for many years, plays a major role in regenerating the North’s communities.

The company also has a strategic land division which specialises in obtaining planning consent for residential development on sites across the South of England.  

Jolyon Harrison, chief executive officer at MJ Gleeson, said: “The renewed confidence in the housing market continues to build appetite for new homes in great locations. The support Lloyds Bank has provided will enable us to meet this upturn and to strengthen our position in the market.

“The team at Lloyds Bank has worked closely with us to understand our business plan and this funding will help us activate the next stage of our growth strategy with confidence.”

David Hunt, relationship director at Lloyds Bank Commercial Banking, said: "We have a long-standing relationship with the business and its recent success is evidence of its ambitious and experienced management team. The new facility will give MJ Gleeson the flexibility to unlock value from its existing assets and invest in additional sites. We look forward to seeing the business add to its portfolio and create more homes for families across the UK."

Dean Gormley, banking and finance partner at Irwin Mitchell, led the team that advised Lloyds Bank.