Centrus advises Broadacres on wholesale restructure and £50m funding

Transaction Overview

Centrus advised Broadacres on the wholesale restructure of £115m bank portfolio, as well as £50m new bank & bond aggregator funding from MORhomes

Broadacres Housing Association (“Broadacres”) is an innovative rural focused housing association providing over 6,500 homes in North Yorkshire.

Broadacres’ ambitions include delivering new homes (900 by 2025), along with an affordable warmth strategy, as part of its journey to SAP C by 2030 and longer-term carbon net zero strategies.

Centrus, following appointment as retained advisor, developed a treasury and funding strategy to provide a more flexible platform to achieve these ambitions, with a clear multi-staged project for implementation.

Centrus Solution

The first stage of this project focused on restructuring existing funding arrangements which were no longer fit for purpose. Centrus supported Broadacres through setting and supporting the achievement of restructured covenants, including carve outs for regulatory driven spending (fire-safety & decarbonisation) to provide further flexibility to meet future requirements and aspirations.

The second stage of the project involved new funding to enhance Broadacres’ liquidity position, providing greater resilience for the organisation, while securing longer dated cost efficient funding.

This has included new bank RCF funding, as well as securing £18m funding from bond aggregator MORhomes. The new funding supports lender diversity and extends the tenor of Broadacres existing portfolio.

Added Benefits

Each of the objectives set out at the start of this project have been achieved, a great achievement against the backdrop of the COVID pandemic and an excellent outcome for Broadacres.

“This banking restructure along with new funding ensures Broadacres is able to deliver new homes as well as our affordable warmth and net carbon zero strategy, providing the basis to achieve our long term ambitions, delivering great outcomes for our tenants and the communities in which we operate.

Centrus’ advice and support has always been excellent, proactive and tailored specifically to Broadacres needs. Their detailed market knowledge and insights, financial analysis, project management and negotiating expertise has been key in supporting Broadacres to achieve our treasury objectives.”

David Smith, Executive Director Resources – Broadacres

“The successful outcome of this restructure and funding project has provided Broadacres with a strong foundation and greater flexibility for the future. I am delighted to have supported Broadacres in these transactions, further enabling the organisation to continue to service the housing needs of its communities and achieve its ESG ambitions.”

Sam Goldman, Director – Centrus

For more information, please contact sam.goldman@centrusadvisors.com

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