Centrus arranged £125m to fund Fairhive’s next phase of growth

Transaction overview

Centrus arranged £125m of new committed facilities for Fairhive, running a whole-of-market competitive process with eleven lenders engaged at a point of strong sector appetite. The process introduced a new funder, sharpening competition on both lending and future hedging while protecting the embedded value and covenants in Fairhive’s legacy portfolio. The result funds Fairhive’s development and growth objectives through 2029, with long-dated RCF capacity and embedded hedging giving flexibility to stage drawdowns, manage interest rate risk and term out over time.

What value did Centrus add?

• Ran a whole-of-market competitive process with eleven lenders engaged, at a point of strong sector appetite.
• Introduced a new funder with a complementary vision and a strong focus on social impact, adding competition on both lending and future hedging.
• Protected significant embedded value in the legacy portfolio, with covenants and controls unchanged.
• Prioritised embedded hedging, giving simple routes to manage interest rate risk without a need for separate ISDA arrangements.
• Secured long availability windows, letting Fairhive stage drawdowns and recycle liquidity efficiently.

How did this transaction benefit Fairhive?

• Funded capacity to deliver the development and growth objectives through 2029, with £125m of new committed facilities from The Co-operative Bank and Nationwide.
• Strong competition delivered pricing inside business plan assumptions.
• Long-dated RCF capacity protected, a key differentiator for Fairhive, giving flexibility around capital commitments and room to term out over time.
• ISDA complexity avoided, with both counterparties able to provide options on future fixed rates.
• Corporate controls and covenants unchanged, preserving flexibility as Fairhive delivers on its medium-term ambitions.

“Centrus delivered best-in-class market access, engaging with a wide field of funders and introducing a new counterparty that sits well alongside our existing treasury portfolio. Every pound saved on the cost of debt is a pound we can stretch further into new homes, and the funding secured supports the ambitions set out in our Corporate Strategy. Their understanding of our business and our objectives gave the Board real confidence in the decision making.“

Izabela Falinska, Executive Director Finance and Resources – Fairhive

“Very happy to have supported Fairhive on this transaction. They have a clear vision and have delivered on their promises, beating targets on reinvestment and new homes last year. This process helped deepen their existing bank relationships and brought in a complementary new funder, giving Fairhive capacity to grow well beyond the current plan period. The final structure was simple and well-priced, with straightforward hedging and the scale to support their growth across Buckinghamshire and the surrounding counties.”

Richard Conway, Director – Centrus

For more information, please get in touch with Richard Conway, Director for Housing, Education & Care.

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