Peabody agrees new £50m loan as European bank enters UK social housing market

CIC said its new investment recognises the “important role of housing associations in the UK”.

The G15 member also recently agreed a new £100m loan from The Co-operative Bank. 

Phil Day, Peabody’s chief financial officer, said: “We welcome CIC’s entry into the social housing sector and value their confidence in Peabody and in the UK social housing model.

“This new loan will help us continue with our plans to deliver our long-term business plan, while ensuring value for money.”

He said “access to a competitive and diverse lending market” is important for organisations like Peabody as it helps them to “plan and deliver with confidence”.

“We look forward to building a good working relationship with CIC,” Mr Day added.

Peabody said that last year it spent £431m maintaining and improving residents’ homes, and invested £9m in neighbourhood projects through its community foundation.

John Burns, director at CIC London, said: “We are delighted to be completing this transaction with Peabody Trust, recognising the important role of housing associations in the UK.

“This transaction is aligned with our group’s ‘entreprise à mission’ (purpose), and our commitment to fostering a more equitable and sustainable society. We look forward to developing the relationship with Peabody in the years to come.”

A Centrus spokesperson said: “We were pleased to advise Peabody and work with CIC on this transaction, supporting a new lender’s entry into the social housing sector. Broadening the range of funding options available to housing associations is important, as diversification helps deliver long-term value for residents.”