Local Space secures £75m of new funding

 

Local Space Limited is pleased to announce it has raised £75m for a final maturity of 40 years from a single UK Investor.

The facility is made up of two tranches: the first is drawn immediately and carries an annual interest rate of 3.17%; the second will be drawn in a year’s time and carries a rate of 3.28%. Together they represent one of the cheapest long dated private placements made by a Housing Association in 2017, a reflection of Local Space’s unusually attractive credit rating at AA- and robust business model.

Jitinder Takhar, Chief Executive Officer says:  “Local Space is very pleased to have raised debt that extends well beyond the existing agreement it has with Newham Council to provide much needed rented accommodation. The issue establishes the strong standing of Local Space in the Capital Markets and provides a firm foundation for any future funding.

As a small but highly successful housing association we operate a unique partnership approach to delivering social housing and this facility provides further confirmation of the success of the strategy. The facility will allow us to meet our targets of building or acquiring a further 800 affordable homes by 2020.”

JCRA advised Local Space on the funding and Barclays Capital acted as Agent.

For more information:

 

Iain Bacon

Interim Finance & Resources Director

Local Space

Tel:  020 8221 4031

IainB@localspace.co.uk

Thor Bostelmann

External Communications Manager

JCRA

Tel: 0207 493 3310

Thor.bostelmann@jcrauk.com

Notes to Editors

About Local space:

Local Space is a social landlord with charitable status, dedicated to delivering affordable and quality social housing to people on lower incomes, to help them improve their quality of life. Local Space was created in 2006 through a partnership between the London Borough of Newham and a group of housing professionals. The gifting of 450 properties from Newham to Local Space enabled it to raise £200 million to buy and improve more than 1000 homes across East London within two years of establishment; the majority of these are in Newham.  Local Space now owns over 1800 homes, mainly in the east end of London, many managed in partnership with Newham, to provide affordable homes. Local Space has developed a successful model of working in close partnership with local authorities and also works with the City of London, Hackney, Enfield and Waltham Forest. Local Space is rated AA- by Standard & Poors and G1/V1 by the Homes and Communities Agency

About JCRA:

JCRA are independent financial risk advisors, specialising in hedging and debt advice that is strategically aligned to what you and your business want to achieve. We have over 25 years’ experience structuring and advocating for competitive pricing in derivative products. We formulate and execute interest rate, foreign exchange, inflation and commodity hedging strategies and provide debt advice to real estate, project finance and infrastructure, private equity, social infrastructure and corporate clients across the globe. Helping businesses and organisations stay one step ahead.