Pegasus Homes finalizes two refinancing deals totalling €137m

Later-living developer and operator Pegasus Homes has finalized two significant refinancing deals: an £88 mln (€100.7 mln) loan from Barclays UK Corporate Bank and a £32 mln (€36.6 mln) loan from Leumi UK. 

Guy Brocklehurst

The Barclays loan, a substantial increase and extension of their existing £29 mln (€33.2 mln) facility, validates Pegasus Homes' growing emphasis on rental properties for later living. The loan is complemented by additional investment from long-term partner, Oaktree. It supports the acquisition of 172 rental apartments by its sister company, Pegasus Homes Rental Group. This transaction brings the rental portfolio to 332 homes, valued at £132 mln (€151.0 mln). 
The loan from Leumi UK will be used to refinance part of its "for sale" portfolio. This consolidates the company's lending relationships to a core group, Deutsche Bank and Leumi UK, who first provided financing earlier in 2024. This refinancing, combined with the sale of rental homes to its sister company, has significantly reduced Pegasus Homes' debt and strengthened its financial position, supported by its key lending partners.
Pegasus Homes is a well-established player in the later-living market with a comprehensive service model and a portfolio of 1,709 homes across England.
David Clark, CFO, Pegasus Homes, said: “Securing increased financial backing from Barclays UK Corporate Bank for our rental platform is a strong endorsement of our strategy, which is underpinned by the very positive track record established over the last two years since the start of their original loan. This deal, alongside Oaktree’s continued support, further solidifies our transition to a dedicated rental operator of senior living homes.” 
Charles Conway, Real Estate relationship director at Barclays UK Corporate Bank, said: “We are delighted to be extending our support to the Pegasus senior living rental portfolio, which is delivering energy-efficient homes to an underserved segment of the residential rental market. We recently announced a £22bn Business Prosperity Fund to help businesses across the UK invest for growth and are pleased to see it in action with deals like this one. We look forward to continuing to grow our relationship with Pegasus in the years ahead.”
Guy Brocklehurst, relationship director, Leumi UK, added: “This transaction reflects the strength of our client partnerships and our commitment to supporting Pegasus’ evolving strategy, building upon a strong and established relationship. This deal involved multiple moving parts and tight timelines - we collaborated closely with the Pegasus team throughout the process to align with their requirements and deliver a solution that met their needs. We look forward to supporting them on the next stage of their growth journey.” 
Moorhall Capital advised Pegasus Homes on both loans.