Later living developer-operator Pegasus Homes has secured new debt financing for its rental strategy and a new £32m loan for its ‘for sale’ stock from Barclays UK Corporate Bank and Leumi UK respectively.
Barclays has increased its existing debt facility from £29m to £88m and extended its term by a further three years. This is complemented by additional investment from long-term partner Oaktree.
The financing from Barclays has enabled Pegasus Homes’ sister group and rental portfolio company Pegasus Homes Rental Group to purchase 172 rental apartments from Pegasus Homes for £78m.
The refinancing of part of the company’s remaining ‘for sale’ portfolio with a new £32m loan from Leumi UK has reduced the number of lenders down to a core group of Deutsche Bank and Leumi UK. The new facility completes the refinancing of the remaining development finance held by the company.
David Clark, chief financial officer at Pegasus Homes, said “Securing increased financial backing from Barclays UK Corporate Bank for our rental platform is a strong endorsement of our strategy, which is underpinned by the very positive track record established over the last two years since the start of their original loan. This deal, alongside Oaktree’s continued support, further solidifies our transition to a dedicated rental operator of senior living homes.”
He added: “The company has enjoyed an excellent relationship with Leumi UK and we are delighted to receive their underwrite to lend again following the significant paydown, ahead of budget, of their first loan.”
Charles Conway, real estate relationship director at Barclays UK Corporate Bank, said: “We are delighted to be extending our support to the Pegasus senior living rental portfolio, which is delivering energy efficient homes to an underserved segment of the residential rental market. We recently announced a £22bn Business Prosperity Fund to help businesses across the UK invest for growth and are pleased to see it in action with deals like this one. We look forward to continuing to grow our relationship with Pegasus in the years ahead.”
Guy Brocklehurst, relationship director at Leumi UK, added: “This transaction reflects the strength of our client partnerships and our commitment to supporting Pegasus’ evolving strategy, building upon a strong and established relationship. This deal involved multiple moving parts and tight timelines – we collaborated closely with the Pegasus team throughout the process to align with their requirements and deliver a solution that met their needs. We look forward to supporting them on the next stage of their growth journey.”
Rob Jones, principal at Moorhall Capital, which advised on both loans, said: “We are delighted to have continued our strong relationship with Pegasus Homes on these important financings. It is great to see two existing funding partners reaffirm their support for the business’ strategy and it is testament to all the teams and professionals that we were able to deliver these deals simultaneously.”
