Charitable housing association Local Space has secured a £120m private placement agreement with MetLife Investment Management.
The funding, which comprises an initial drawdown of £40m at the end of March 2024, will be used to rebalance Local Space’s existing debt portfolio, from shorter variable rate to longer term fixed rate borrowing and provide funds for its future property acquisition and investment programmes. Subsequent loans of £40m will be drawn in February 2025 and February 2026.
Josie Parsons, chief executive of Local Space, said: “We are pleased to have secured this agreement with MetLife Investment Management at a time when homelessness and those in temporary accommodation is becoming critical, particularly in London, with cost increases of up to 40% on temporary accommodation. The funding enables us to support those in need, with a focus on families with children, by providing stability via settled accommodation and alleviating the social impact that homelessness causes generations of a family.”
Stephen Valvona, director – private capital at MetLife Investment Management, added: “We are delighted to extend our relationship with Local Space by providing funding over the next two years to support the provision of long-term, safe and secure homes to homeless families in East London. This additional investment in Local Space further emphasises our ongoing support for the UK social housing sector in addressing a shortage of affordable housing across the UK.”
Chatham Financial advised Local Space on the funding arrangement with MetLife.
