We’re pleased to announce that we have secured a £120 million private placement agreement with MetLife Investment Management, the global institutional asset manager.
The funding will be used to rebalance Local Space’s existing debt portfolio, from a shorter variable rate to a longer-term fixed rate borrowing. This will provide funds to invest in future growth and deliver homes for those in crisis in London, as part of an ongoing growth strategy.
It comprises an initial drawdown of £40 million at the end of March 2024, with the subsequent loans of £40m being drawn in February 2025 and February 2026.
Josie Parsons, Chief Executive at Local Space, said: “We’re 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, said: “We’re 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.”
Earlier this year, we were awarded top grades from the Regulator of Social Housing, returning to a V1 financial viability grade and a G1 governance grade following its 2023 stability review.
Local Space also holds an AA- S&P Global credit rating for the seventh consecutive year and remains the only UK housing association to achieve this rating.