Local Space, a specialist London-based housing association, has raised £61m through a private placement to improve its homes and boost their sustainability.
The 2,670-home landlord, which offers temporary accommodation for key workers and those at risk of homelessness, secured the funding through MetLife Investment Management, a subsidiary of US insurance giant MetLife.
The new funding consists of an initial drawdown of £40m, with half maturing in May 2043 and half in May 2051. The remaining £21m is deferred until September next year.
Interest rates on a number of different tranches ranged between 2.38 per cent and 2.48 per cent, Local Space said.
The number of investors and their identity was not disclosed.
Stratford-based Local Space said the funding would be used to “enhance the quality and sustainability credentials of more than 800 homes, including replacement of kitchens, bathrooms, roofs, heating systems and other major improvements over the next few years”.
The landlord, which was established by Newham Council in 2006, said the private placement was the “first step” to refinancing loans maturing during the next four to five years.
In its last reported full-year results to March 2020, Local Space posted a post-tax surplus of £4.9m on a turnover of £34.4m.
A year ago, the group retained its AA- credit rating with Standard & Poor’s. At the time, Local Space said it was the only UK housing association to have an AA- credit rating among those that S&P rates.