Long Harbour secures €78.5m Barclays debt facility

Real estate investment manager Long Harbour has secured a new, flexible, and scalable debt facility worth an initial £66.8 mln (€78.5 mln) from Barclays. 

UK residential - Long Harbour

This funding will help accelerate the growth of its Single Family Housing Fund (LHSFF), allowing Long Harbour to finance development costs for both current and future projects equally.
The LHSFF, which previously received a £300 mln (€352.5 mln) seed equity commitment from South Korea's National Pension Fund, aims to reach £1.2 bn (€1.41 bn) within the next 18 months. Its strategy is to acquire new-build family homes throughout the UK, particularly in the South and South East of England.
To date, the fund has committed over £180 mln (€211.5 mln) to acquisitions, funding more than 450 homes, with an additional £100 mln (€117.5 mln) in opportunities identified. Early investments include 105 homes in Newhall and 369 rental homes from Dandara and Miller Homes in Horsham, Great Dunmow, and Kent. These investments are focused on providing much-needed rental housing in areas facing housing shortages and high demand.
Long Harbour intends for the LHSFF to attract both domestic and international investment to address the UK's undersupplied housing market, where the "build to rent" model is becoming increasingly important amid rising interest rates and a need for diverse housing finance solutions.
Jack Spearman, managing director of Single Family Housing at Long Harbour, said: “Scaling LHSFF’s portfolio and meeting our ambitious deployment targets requires well-structured debt funding that can support forward funding for our investments. The option to extend the size of the loan with Barclays, based on future acquisitions, gives us flexibility while we focus on identifying the best opportunities in the market. We see a huge opportunity for overseas investors to gain exposure to this high-growth market, benefitting from Long Harbour’s experience in developing and operating build-to-rent assets.”
Steve Springens, head of Listed Companies at Barclays, said: “Barclays were delighted to continue supporting Long Harbour in this socially important fund. Providing the house builders with the confidence to build and supply rental homes for Long Harbour’s tenants is very much needed in the UK. In Long Harbour, we are supporting an operator with an excellent track record, in a loan structure that works for all parties.”