Centrus supports Family Housing in successful £68.5m debt restructure and £18.5m fundraising

Overview

Following the successful completion of these transactions, Family Housing is now able to move forward from a position of enhanced strength, supporting Welsh Government’s aspiration of creating more affordable housing, with its own ambitious plans to build 700 new homes.

Family Housing is a diverse organisation with just under 3,000 properties. It manages both general needs, supported housing and extra care schemes. It covers five local authority areas including the Swansea Bay City Region.

Centrus Solution

Centrus was engaged to undertake a treasury and funding review, guiding Family Housing towards the optimal strategy to restructure existing finance and hedging with Barclays Bank and to attract new finance from Principality Building Society and GB Social Housing.

The successful implementation has substantially increased growth and investment capacity, created a more diversified funder base having established new relationships with flexible and pragmatic institutions, achieved a more balanced approach to fixed/floating rate debt with options to undertake further hedging in the future and mitigated refinance risk. Overall, the transactions have resulted in a robust and flexible treasury platform which will enable Family Housing to pursue its growth ambitions.

This engagement presented an unusual set of challenges, not least the existing financing position and closure of the transactions in highly volatile market conditions arising from the Covid-19 pandemic. Family Housing was able to exercise effective governance throughout, supported by clear analysis from Centrus and our conviction led advice.

“We established a clear set of objectives of what we wanted to achieve, and Centrus provided first class support throughout the project, enabling us to find a solution which unlocked previous financial constraints. The joint working of the Board and Leadership Team was great to see, and I look forward to the next stage of our journey.”

Marcia Sinfield, Chief Executive – Family Housing Association

“I am delighted that we have been able to complete these transactions. The current climate required a real strength of nerve and clarity of decision making. We now have in place a financing structure and balance sheet which allows us to concentrate on our ambitious plans for growth.”

Jackie Royall, Chair – Family Housing Association

For more information, please contact london@centrusadvisors.com

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