Pegasus Homes completes double refinancing with £88m Barclays loan endorsing its rental strategy and £32m loan from Leumi UK
Posted: 21 Jul 2025 | Share
Specialist later-living developer and operator, Pegasus Homes, has secured significant new debt financing for its rental strategy and a new loan for its “for sale” stock, from Barclays UK Corporate Bank and Leumi UK respectively, consolidating the lending on its balance sheet.
Barclays UK Corporate Bank, one of the UK’s leading high-street lenders, has increased its existing debt facility from £29 million to £88 million, and extended its term by a further three years, marking a milestone in Pegasus Homes’ journey to becoming the UK’s leading provider of later-living rental homes. This is complemented by additional investment from long-term partner, Oaktree.
Reflecting the group’s evolution from a focus on private sales to rental homes, the financing from Barclays 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 £78 million, brings the total rental portfolio managed in the Rental Group entity to 332 homes, with a combined value of £132 million.
One of the country’s leading later-living providers, with over 40 years in the sector, Pegasus Homes has established a services model stretching across development management, property management, letting services, estate management and a sales agency service to existing customers. The group currently manages the operations and maintenance of a total of 1,709 homes within the portfolio, spanning prime locations across England.
David Clark, Chief Financial Officer, 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.”
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 and puts the company on a very strong footing going forward, with the support of its lending partners.
David Clark adds: “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, 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 and continues to manage the positive four-year strong relationship.
Rob Jones, Principal of Moorhall Capital said “We are delighted to have continued our strong relationship with Pegasus Homes on these important financings. It is great to see two existing funding partners reaffirm their support for the business’ strategy and it is testament to all the teams and professionals that we were able to deliver these deals simultaneously”.