Centrus advises Clúid Housing on landmark €54m fundraise with Legal & General

Transaction Overview

Clúid Housing, is one of the State’s largest approved housing bodies (AHBs) with more than 8,000 properties under management across all counties in Ireland. Clúid was established in 1994 and leads the way in delivering social housing solutions to those on local authority housing lists. Clúid has an ambitious growth strategy to deliver an additional 3,000 new social homes before the end of 2022.

Centrus Solution

Clúid engaged Centrus to assist in developing a debt financing strategy including identifying new sources of private debt capital. Following the completion of this work, Centrus was appointed to implement the agreed funding strategy, including debt structuring, financing competition, funder negotiations, and assistance with bringing the transaction to financial close.

Outcome

The result is a landmark €54m debt finance agreement with Legal & General Investment Management. The competitively priced, long term finance will enable the delivery of c.200 new social homes across Ireland and marks the first Irish AHB to secure a financing agreement of this scale with an international institutional asset manager. The first homes financed through the agreement are expected to be delivered in Q1 2021.

“This new funding will support Clúid to deliver its social mission of providing good quality, secure, affordable housing. The homes delivered through this funding agreement will be available as social housing in perpetuity, providing a home for generations to come. Centrus acted as financial advisers to Clúid on this agreement, enabling us to successfully navigate the process.”

Brian O’Gorman, Chief Executive – Clúid Housing

“Centrus is delighted to be advising our long-standing client Clúid on this exciting new financing package. This is the first direct institutional investor financing of this size for an AHB and provides access to long term efficient finance at a time when market interest rates are at historically low levels. Clúid’s work in securing institutional investor funding should provide a template model for other AHBs to access alternative sources of finance enabling continued value for money for the Government.”

Jason Murphy, CEO – Centrus

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