Signpost Housing Group has signed a ground breaking loan agreement with Bank of Scotland Corporate Banking to provide funding for its Market Renting subsidiary - Signpost Homes. The facility, for £25million, is to be utilised for pipeline schemes in Exeter, Plymouth and Poole providing accommodation to young professionals and the direct let student sector.
Signpost Housing Group has invested nearly £2million equity in Signpost Homes and this - coupled with the quality of the assets in the pipeline - has given Bank of Scotland considerable confidence in this innovative arrangement.

Signpost Homes is part of the Signpost Housing Group, which was set up in 1999. To date Signpost Homes has acted as a Managing Agent for properties, which have been built for rent on the open market or within the Higher Education sector. This new loan facility means that the company will now be able to develop and own assets, which will strengthen its balance sheet and allow it to acquire and dispose of assets to maximise investment returns.

Ian Metcalfe Group Director of Finance for Signpost Housing Group explains, "This new loan facility for Signpost Homes means that the company will be able to develop much needed accommodation in the private and student accommodation sectors. Any surpluses will be fed back into the Group to be used to fund its social housing objectives. We have created a synergy within the Group Structure that will meet the needs of most consumers seeking accommodation, whether it be a house for sale on the open market, for rent in the private or social housing sector, student accommodation, or supported housing for vulnerable people. Each Company within the Group has a part to play and this new facility means that the penultimate piece of the puzzle has been fitted."

Willie Sutherland, Associate Director of Housing Finance at Bank of Scotland Corporate Banking added, "Working closely with the management of Signpost Group, Bank of Scotland have been able to structure an innovative facility which allows maximum flexibility together with long term commitment."

Mr Metcalfe says, "The loan facility shows great confidence in Signpost's business plan, the Board of Management and the senior management team. It is a great achievement considering the youth and size of the Group."

Ends: for further details please contact Ian Metcalfe on 01258 484810 or Tina Partridge, Marketing Manager at Signpost on 01258 484884.

Further details

* Signpost Housing Group is based in Blandford Forum, Dorset, with area offices in Sturminster Newton (Dorset), Wincanton (Somerset), Christchurch (Dorset), Exeter (Devon), Plymouth (Devon) and Sedgemoor (Somerset).

* The Group has 5 companies: Signpost Housing Group (parent)
Signpost Housing Association
Signpost Care Partnerships
Signpost Services
Signpost Homes

* The Group employs over 400 people and owns and manages over 4,000 homes across the South West.

* Signpost Homes is about to complete a scheme in Exeter, which is a good example showing that if synergy exists within a Group Structure that it can work extremely well to meet the diverse needs of people in the housing market. This scheme at Bonhay Road provides shared ownership properties and apartments to rent on the open market. Already the demand for the properties has exceeded all expectations.

* Bank of Scotland is a part of HBOS Group, the banking group formed through the merger of Bank of Scotland and the Halifax Group. HBOS plc is the UK's 5th largest bank.

* The Housing Finance team of Bank of Scotland Corporate Banking provides lending and other financial services to "Registered Social Landlords" (RSLs). It is a UK market leader with some £4 billion of lending to more than 200 RSLs. The Housing Finance team is based at locations in London, Edinburgh and Halifax.