MetLife provides £61m to London housing association

A London housing association has secured a £61m private placement with MetLife Investment Management. Local Space was founded in partnership with Newham Council and has 2,670 properties in nine local authorities in London and Essex. The housing association will use the 30-year facility to refinance loans set to mature in the next four to five years and to upgrade 800 properties in its portfolio, with remaining funds to support growth of the portfolio. Local Space is currently renegotiating existing contracts with local authorities to offer a cost-effective solution. It aims to invest £3m a year into upgrading its stock over the next few years, with a further £1m a year dedicated to net zero carbon works from 2022. The housing association has earmarked £20m to expand its portfolio this year, acquiring and refurbishing homes to provide temporary and affordable accommodation for local authorities. [caption id="attachment_1095279" align="alignright" width="200"] Josie Parsons[/caption] Josie Parsons, chief executive of Local Space, said: “It is staggering to think that it is estimated there are now more homeless Londoners living in temporary accommodation than the entire population of a city like Oxford. We have an increasingly important role across the local authorities we operate in through invested capital and supporting our tenants to live in a secure home. “With many boroughs concerned about a cliff-edge end to the provision of emergency support, we believe that there will be an even more important role for our organisation to play in addressing this impending homelessness crisis.” Annette Bannister, head of European infrastructure at MetLife Investment Management, added: “Our investment in Local Space underscores our continued support for the UK social housing sector in addressing a shortage of affordable housing across the country.” The finance comes as private institutions ramp up investment into the sector. Last month, Patron Capital announced a move into temporary affordable housing, aiming to deploy £100m in a joint venture with Oak Housing. Fore Partnership is also seeking expansion into this sector. Lloyds Securities was placement agent on Local Space’s deal.   To send feedback, e-mail emma.rosser@eg.co.uk or tweet @EmmaARosser or @EGPropertyNews Main photo: Limehouse Lodge, Hackney © Local Space