Barclays has increased its existing debt facility from £29m to £88m and extended its term by a further three years.

This financing has enabled Pegasus Homes’ sister group and rental portfolio company, Pegasus Homes Rental Group Ltd, to purchase 172 rental apartments from Pegasus Homes.

The transaction, valued at £78m, brings the total rental portfolio managed in the Rental Group entity to 332 homes, with a combined value of £132m.

David Clark, CFO at Pegasus Homes, commented: “Securing increased financial backing from Barclays 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 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.

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“We look forward to continuing to grow our relationship with Pegasus in the years ahead.”

In parallel, Pegasus Homes has also taken the opportunity to complete a refinancing of part of its remaining ‘for sale’ portfolio, with a new £32m loan from Leumi UK.

This has reduced the number of lenders down to a core group of Deutsche Bank and Leumi UK, which provided its first loan in early 2024.

The new facility completes the refinancing of the remaining development finance held by the company which, along with the sale of the rental homes to its sister company, has significantly deleveraged its balance sheet.

David added: “The company has enjoyed an excellent relationship with Leumi UK and we are delighted to receive their underwrite to lend again following the significant paydown, ahead of budget, of their first loan.”

Guy Brocklehurst, relationship director at Leumi UK, said: “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 on both loans.