Local Space secures £120m funding from MetLife

Charitable housing association, Local Space has secured a £120m private placement agreement with MetLife Investment Management. The funding will be used to rebalance the housing association’s existing debt portfolio, from shorter variable rate to longer term fixed-rate borrowing, and for its future property acquisition and investment programme. Its aim is to provide a stable debt portfolio with predictable cost on which future growth may be based. The funding comprises an initial drawdown of £40m at the end of March 2024, with subsequent £40m loans being drawn in February 2025 and February 2026. Local Space provides accommodation for key workers and those facing homelessness in London. It has secured the funding at a time the issues facing this population have become “critical”, with cost increases of up to 40% on temporary accommodation. Josie Parsons, chief executive at Local Space, said: “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 of private capital at MetLife Investment Management, said: “We are 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.” Chatham Financial advised Local Space.