A specialist later living developer has secured £120 million in new loans from two lenders, marking a significant step in the group’s evolution from a focus on private sales to rental homes.
Pegasus Homes has secured financing that includes an £88 million debt facility from Barclays UK Corporate Bank, alongside a £32 million loan from non-bank lender, Leumi UK.
The £88 million loan from Barclays, which increases the bank’s previous £29 million facility, will support the company’s expansion into the later living rental market.
This funding will enable its sister company, Pegasus Homes Rental Group, to purchase 172 rental apartments, increasing its portfolio to 332 homes valued at £132 million.
In parallel, Leumi UK’s £32 million loan will refinance part of Pegasus Homes’ remaining “for sale” portfolio, reducing the number of lenders and further solidifying the company’s balance sheet.
This refinancing, alongside the sale of rental homes to the Rental Group, and further complemented by an undisclosed additional investment from long-term partner, Oaktree Capital Management, will significantly reduce Pegasus Homes’ debt, setting a foundation for future growth.
Charles Conway, real estate relationship director at Barclays, said: “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.”
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.”
Moorhall Capital advised on both loans.
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