HBOS has taken a 20.5 per cent stake in Apollo, one of the largest property service companies in the South of England. Apollo operates in both the public and private sectors with projects in social housing regeneration, property maintenance and the improvement and construction of new education facilities. The remaining stake will be held by its management team.
The move will benefit from the government’s recently announced investment of £13.5 billion in affordable housing, in an effort to increase the supply and quality of such properties.
HBOS has already proved its property investment credentials through its ownership of McCarthy & Stone, the retirement home builder, and Crest Nicholson, a residential builder.
Mark Hammond, head of integrated finance at Bank of Scotland, said: “As a bank we have particular expertise in the property refurbishment and maintenance arena and having followed the success of Apollo, we are delighted to support the management team in the next exciting stage of the group’s development.”
Alan Lakey, partner at Highclere Financial Services, commented: “It seems sensible for HBOS to diversify away from purely lending. Being exposed to the interest rate market only, it makes sense to do so. While it’s a different area, there is an affinity there. It gives it a further outlet for its lending, as it is probably astute enough to put in place a preferred lending facility. It’s probably a good move, but time will tell.”
