- Santander has agreed a 拢310m refinancing package with Peabody, one of the largest not-for-profit housing associations in the UK.
- The transaction will support Peabody as it continues both its regeneration plans and development of much needed new homes across London and the Home Counties.
- For over 25 years, Santander UK has partnered with social housing providers, offering significant sector expertise, helping clients to secure funding, improve housing stock, strengthen their financial position and help deliver safe, affordable homes for communities across the UK.
Santander Corporate and Commercial Banking has agreed a refinance package totalling more than 拢300 million with not-for-profit housing association Peabody.
The funding package includes a 拢125m revolving credit facility and a 拢185m term loan, allowing Peabody to continue both its regeneration plans and its ongoing development programme. The 拢310m will extend the social housing provider鈥檚 liquidity under a more simplified lending structure, enabling operational efficiencies.
Peabody is responsible for nearly 109,000 homes across London and the Home Counties. The housing association is also responsible for the community centres, play areas and green spaces that bring these areas to life and ensures these spaces are well-maintained and provide reliable landlord services.
The refinance agreement will support Peabody as it continues to develop quality affordable housing and invest in residents鈥 existing homes to ensure they are well maintained, safe and sustainable.
Santander and Peabody have a long-standing relationship dating back to 2003 and the bank has supported the housing association as it has grown to become one of the largest social housing providers in the sector.
Jane Johnstone, Head of Social Housing, Santander Corporate and Commercial Banking, said: 鈥淲e are delighted to be strengthening our relationship with Peabody as they continue to provide a solution to much needed affordable housing in London and the Home Counties.
鈥淎ffordable housing is a key focus for the Government and we at Santander are committed to playing our part in forwarding this agenda. We have lent to housing associations for over 25 years, and look forward to continuing working with Peabody to amplify our shared commitment to positive long-term change.鈥
Phil Day, Chief Financial Officer at Peabody, said: 鈥淚鈥檓 pleased that we鈥檝e agreed this refinancing package with Santander. It simplifies the structure of our debt with the bank and will help us continue with our plans to invest in residents鈥 homes so they鈥檙e safe, warm, and well-maintained, as well as doing what we can to build much-needed new homes. We鈥檙e always looking for opportunities to develop our links with financial institutions and look forward to building on our relationship.鈥
For over 25 years, Santander UK has partnered with Social Housing providers to help the sector reach its goals, lending to over 100 housing associations in the UK that provide over 1.9 million homes. The bank now lends 拢7.8 billion to the sector and offers a range of finance solutions.
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About Peabody
Peabody is one of the UK鈥檚 oldest and largest not-for-profit housing associations, founded by philanthropist George Peabody in 1862 to help Londoners in need. Today we take a local approach, working with residents and communities to strengthen our 140 neighbourhoods, provide quality homes and deliver a range of services to support people when they need it most.
We look after 109,000 homes and 220,000 residents across London and the home counties, plus the community centres, play areas, and green spaces that bring these areas to life. We provide residents with reliable landlord services and keep these places well-maintained. We also provide care and support services to around 25,000 customers including specialist accommodation and vital support for people affected by a range of social and health issues.
We鈥檙e focused on listening to residents so we can deliver better services and better homes and places. Our local teams work closely with residents, councils and partners to tackle inequality, improve wellbeing and strengthen communities. Alongside this, we鈥檙e committed to play our part where we can in building more affordable homes which our communities need.
With an average rent of 拢147 a week, we offer real value, and our homes remain significantly more affordable than the market. In 2024鈥25, we spent 拢431 million maintaining and improving residents鈥 homes.