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Centrus arranges funding for DBE Energy anaerobic digestion plant 

Overview

Centrus acted as financial advisor to the management team and key shareholder of DBE Energy Limited, an anaerobic digestion (AD) plant in Surrey, England. Centrus supported them in securing investment from a fund managed by the Sustainable Private Infrastructure team of Lazard Asset Management. This transaction represents the fund’s inaugural investment in the UK market.

DBE Energy’s state-of-the-art AD plant began receiving local food waste in January 2020 and has the capacity to process 25,000 tonnes of food waste each year to produce up to 2.3 million cubic metres of clean, green, renewable biomethane, providing energy for around 700 average sized family homes per year. 

Centrus’s role was to support DBE Energy’s shareholders in securing the right financial partner to support the next phase of their growth as the management aims to diversify revenue lines through carbon capture for the local food and beverage industry, as well as potentially consolidating the food-waste AD sector.   

Our services included: 

  • Developing the business plan and financial model in collaboration with the management team.
  • Identifying the right shareholder to pursue DBE Energy’s growth plans from a broad range of financial and strategic investors and negotiating commercial terms supporting DBE Energy shareholders.

Centrus value add: 

  • A range and depth of relationships with equity investors active across the UK and Europe.
  • Expert modelling capabilities and the ability to create a management presentation that best articulates the business plan.
  • Experience in structuring complex equity and debt financings in a broad range of sectors for businesses in various stages of growth. 

“Centrus supported throughout, actively managing the process from start to finish. The team used their specific sector knowledge and expertise in structuring complex financings to run a sale process. We are delighted with the outcome and look forward to the future in partnership with Lazard Investment Management.” 

Steve Sharratt, CEO of DBE Energy Ltd

“The AD market in the U.K., despite being one of the most advanced in Europe, is fragmented and thus creates significant potential for consolidation and growth. We are delighted to have completed this investment in DBE Energy, and together with its management team are looking forward to growing this partnership further.”

Robert Wall, Head of Sustainable Private Infrastructure – Lazard Asset Management

“It has been a pleasure working with the management and key shareholders of DBE Energy to secure a partner that will drive the future growth of the business. We look forward to continuing to work with the team and new shareholders as they grow their partnership. 

The UK anaerobic digestion market continues to be an exciting growth market and will play a significant role in enabling the UK to meet its net zero targets. Centrus has a deep understanding of the UK and European green gas space and are well versed in helping our clients meet their strategic objectives”

Terence Amako, Head of M&A and New Energies – Centrus 

For more information, please contact Terence.Amako@centrusadvisors.com

Centrus advises regulator on the financeability of Dublin Airport’s c. €2bn expansion

About The Commission for Aviation Regulation

The Commission for Aviation Regulation is an independent statutory body established by the Aviation Regulation Act 2001 and regulates certain aspects of the aviation and travel trade sectors in Ireland. The principal function of the Commission is to set the maximum level of airport charges at Dublin Airport.


Transaction Overview

Centrus undertook a review and analysis of information in relation to the preliminary price cap proposed under a draft determination published by the Commission in May 2019. The results of this review and conclusions on the financeability of DAA’s proposed €2bn expansion plan for Dublin Airport for the period 2020-2024 were provided to the Commission in a report, which was published on the Commission’s website beside its final determination on the price cap in October 2019.


Our Role

  • Centrus advised on appropriate thresholds for financial ratios and a target credit rating for Dublin Airport to enable it to access the debt markets at an efficient cost.
  • Advised on financial market conditions and general funder appetite in the sector to assist in assessing financeability.
  • Review of pricing model underpinning the price determination and scenario analysis to assess downside risks
  • Assessed S&P’s credit ratings methodology and developed an approach to assessing the credit risk of Dublin Airport’s regulated entity on a standalone basis
  • Provided advice on funder appetite for regulated infrastructure businesses and an assessment of market conditions for debt funding for issuers such as Dublin Airport
  • Provided recommendations on adjustments to the risk assignment in the final regulatory settlement to improve investor appetite.

“Centrus provided us robust, evidence based, responsive and timely analysis on Dublin Airport’s ability to finance its €2bn expansion plan. As the economic regulator of Dublin Airport, this analysis informed our final Determination of the maximum level of airport charges for 2020-2024.”


Dr Adrian Corcoran, Director of Economic Regulation – The Commission for Aviation Regulation

For more information, please contact Mark Taheny, Senior Director – Centrus

Centrus arranges additional £16m debt for St Arthur Homes to deliver affordable homes

About St Arthur Homes

St Arthur Homes is a Registered Provider of high quality, Shared Ownership homes in England.

St Arthur Homes currently has a portfolio of over 320 homes, plus significant pipeline over the coming years, working in partnership with a range of national and regional developers.

Specialising in s106 and grant led schemes between 20-150 units and prioritising high quality, energy efficient homes – the new funding will allow St Arthur Homes to continue providing new Shared Ownership homes to customers across the South East and Midlands.

Transaction Overview

St Arthur Homes has secured an additional £16m debt from funds advised by CBRE Capital Advisors to help deliver affordable homes.

Centrus acted as arranger to secure this additional stabilised funding from funds advised by CBRE Capital Advisors, having raised a total c.£60m of development and stabilised financing for St Arthur Homes over the past 12 months.

“It was a pleasure working closely with the Centrus and CBRE teams to deliver this portfolio refinancing covering a portion of our stabilised Shared Ownership stock. The refinancing allows us to continue our growth story of delivering fantastic affordable new build homes to our customers. Many thanks to all involved in the lengthy process in securing this raise and ensuring best Value for Money was secured in a viable manner.”

Costa Ghioules, CFO – St Arthur Homes

“We are delighted to have supported the team at St Arthur Homes again to arrange this additional funding from CBRE. We have been working with St Arthur Homes for the past 2 years and have now arranged c.£60m of debt facilities to help support the development and supply of new shared ownership homes. We look forward to working with the team to continue to support their growth aspirations over the coming years, which will see the portfolio grow significantly to help meet the significant demand for affordable homes in England.”

Scott Douglas, Assistant Director – Centrus

“This is our third loan facility with St Arthur and the first in the stabilised investment space. It has been fantastic watching the business go from strength to strength and we have very much enjoyed working with the Centrus and St Arthur teams again. We see Shared Ownership housing as being of vital importance to the UK housing market and are delighted to have advised a longstanding pension fund client on this debt investment.”

Nick Griffiths, Director – CBRE Capital Advisors

For more information, please contact Scott Douglas, Assistant Director – Centrus

Dragon School becomes the first UK Prep to raise private finance

Transaction Overview 

The Dragon School (“the Dragon”) has successfully raised a £30m debt Private Placement with a maturity of 28 years. The proceeds will be used to repay existing loans, as well as to finance new capital projects including its Net Zero Strategy and improvements to school facilities.

The Dragon School

Founded in 1877, the Dragon which is located in Oxford is widely regarded as one of the leading preparatory schools in the UK.

This is the first private placement for a Preparatory school in the UK.

Our Role 

Centrus acted as financial advisor to the Dragon, drafting a detailed information memorandum and an investor presentation which were shared with a select group of institutional investors. One investor was selected and terms negotiated to achieve the optimal result for the Dragon.

“We are all delighted with the outcome which will enable the Dragon to invest in its strategic ambitions with confidence, and know that we couldn’t have got there without Centrus’ stewardship, advice and guidance along the way.”

Martin Johnson, Chief Operating Officer – Dragon School

“Investors were impressed with the Dragon’s history, scale and track record as well as the quality of its executive and governors. We were delighted to have been appointed to arrange long term finance for the Dragon and the timing of the transaction has proved to be opportune.”

Robert St John – Centrus

For more information, please contact robert.stjohn@centrusadvisors.com

Aster Group implements titanTreasury

Overview

Aster Group (“Aster”) has successfully completed the integration of titanTreasury, the Treasury Management System (TMS) delivered by Centrus.

The group manages over 36,000 homes with a plan to deliver over 11,200 additional homes by 2030.

Aster required an integrated TMS to calculate the rate of SONIA interest rates, calculate the cost of fix rate debt as well as automate the production of accrual and payment journals.

Aster Housing Group property
Souce: Aster Group

Centrus Solution

titanTreasury is an expert Treasury Management System (TMS) that offers financial departments and treasurers the best functionalities for monitoring and controlling operational market risk (rate, foreign exchange, commodities), credit and liquidity risks.

The Centrus and Aster team worked closely throughout the implementation. The client team were provided with training and support to confidently use titanTreasury on a day-to-day basis.

titanTreasury provides accuracy in calculating their Sonia-linked interest amounts and ensures payments are processed on time. With a complex syndicated loan, Aster can rely on titanTreasury to keep on top of their capital and interest payments.

titanTreasury Benefits:

  • Automatically generated month end journals.
  • Control of liquidity and Sonia linked cash payments.
  • Clear view of debt maturity ladder.
  • Enhanced cash visibility.

With optimal integration of third-party tools, Aster can automate treasury tasks, thereby limiting operational risk.

“We have been delighted with the titanTreasury system since implementing, having utilised the expertise of the team to manage the debt portfolio of the group.

We now have a system which generates and automatically posts accounting entries, is efficient and accurate.

Our thanks to the team that supported us through the implementation.”

Paul Jeffries
Director of Treasury – Aster Group

“We are pleased to welcome Aster to the titanTreasury family! As always, we worked closely with the client to streamline processes built around their current eco system. For the Aster treasury team, this means they now have automatic access to reports that give oversight of their liquidity positions, investments and forecast cashflows, while sending accounting journal entries to their ERP system.”

Gilles Bonlong
Director – Centrus

For more information, please contact gilles.bonlong@centrusadvisors.com

Centrus arranges £70m sustainability-linked private placement for Saxon Weald

Transaction Overview

LGIM Real Assets (Legal & General), on behalf of its Corporate Debt team, announced that it has provided Saxon Weald £70m of sustainability-linked financing, to accelerate the UK’s development of new, affordable energy efficient homes. Centrus acted as the sole arranger.

Managing approximately 6,750 homes across Sussex and Hampshire, Saxon Weald is a housing association providing affordable rented and shared ownership homes for individuals and families, as well as properties exclusively for the over 55s. The proceeds of LGIM Real Assets’ investment will be used to finance new homes, designed to be energy efficient – with Saxon Weald targeting EPC A ratings on all new builds.

With rising energy bills, the efficiency of our homes has never been more in focus. The housing sector also remains a major contributor to carbon emissions, with heating and hot water for UK homes accounting for 25%¹ of total energy use and 15%² of the UK’s greenhouse gas emissions.  If the UK is to meet net zero and be fit for the future, the housing sector requires rapid and radical change. This presents the social housing sub-sector with an immediate challenge – where private sector support will be key.

Tackling this, via a forward-thinking pricing structure with sustainability at its core, Saxon Weald will receive a discount on the coupon provided it meets ambitious energy efficiency targets – better supporting the communities in which Saxon Weald operate, and more widely, playing an important role in the South-East’s energy transition.

Highlighting Legal & General’s longstanding ESG agenda, today’s investment brings LGIM Real Assets’ ESG-linked loans in the corporate debt space to over £430m, spanning the Social Housing, Higher Education, and Corporate sectors. A significant proportion of this financing has gone towards the social housing sector specifically, supporting some of the UK’s largest social housing providers across major cities and regions* with their decarbonisation and social impact ambitions.

Centrus worked with Saxon Weald to develop strategy and provide transaction advice. Legal counsel was provided by Devonshires and Addleshaw Goddard.

“There’s a stark, deep-rooted supply-demand imbalance when it comes to good quality, affordable housing in the UK. This, with the backdrop of rising energy bills and need to transition to a low carbon economy, demands innovation within the social housing sector.

With an established track record and enduring appetite, we’re pleased to complete another significant investment in this space and further demonstrate our commitment to the future of the UK’s housing provision. This investment marks yet another example of inclusive capitalism at work, delivering a return to our pension holders whilst also benefitting our local communities.”

Steve Bolton, Head of Corporate Debt, Europe – LGIM Real Assets

“The new funding forms a core part of delivering our sustainability strategy and in continuing our objective of providing affordable homes.  I’m particularly pleased with how well the teams at LGIM Real Assets and Centrus, assisted by Devonshires, structured the new funding to fit our aim to enhance the delivery of sustainable homes for our customers.” 

Michael Chinn, Executive Director, Resources – Saxon Weald

“We are delighted to have worked with the teams at both Saxon Weald and LGIM Real Assets to structure this sustainability linked private placement. The facility will help deliver more energy efficient, affordable homes across the Southeast of England, in addition to facilitating investment in the existing stock to further improve energy efficiency.”

John Tattersall, Senior Director – Centrus

Centrus arranges £19m loan facility for Cromwood to help house domestic abuse victims.

Cromwood Housing Group,  announced the signing of a new £19.39m loan with Rothschild & Co as part of a Greater London Authority (GLA) led scheme aimed at eradicating rough sleeping, as well as providing housing for domestic abuse victims.

About Cromwood  

Cromwood Housing is a registered provider (RP) of social housing, delivering affordable homes to the people who need it the most, when they need it the most.

Transaction Overview 

The new debt facility, along with a £18.1m grant from the GLA, will allow Cromwood to proceed with the acquisition of 160 new properties. Of these, 140 will provide long term, move-on, housing for those sleeping rough in London, while the remaining 20 will be designed to house individuals fleeing from domestic violence.

Cromwood has partnered with two charities – Thames Reach, which works with people affected by rough sleeping to deliver this project, and Solace, which supports survivors of abuse, violence and exploitation. Both charities will identify suitable clients and provide a range of support to help them settle into their new homes.

Centrus Solution

The new facility, which was arranged and structured by Centrus, has a fixed rate 19-year term in line with the GLA nominations agreement and is secured against the cashflow from the acquired properties.

This transaction follows 135 properties acquired in 2021 to tackle rough sleeping with support from GLA grant and a c.£20m loan from BAE Systems Pension Fund, arranged also by Centrus. 

“This investment will enable us to provide much-needed specialist housing across London and extend our work in this area. It’s a real achievement to partner with a company of Rothschild & Co’s size and reputation to invest in social housing.


It follows on from our success with BAE Systems last year and demonstrates the key role smaller registered providers can play in attracting new investors into this market to accelerate the supply of accommodation for rough sleepers and those fleeing domestic violence and abuse.”

Moses Hirschler, Chief Executive – Cromwood

“We are delighted to have worked with the Cromwood team again, and Rothschild & Co, to put in place this loan facility, in addition to the £20m we arranged from BAE Systems Pension Fund last year. This additional funding will have a direct and positive impact on the lives of those concerned and embodies our ethos of finance with purpose.”

Phil Jenkins, Managing Director – Centrus

For more information, please contact phil.jenkins@centrusadvisors.com

Centrus advises United Westminster & Grey Coat Foundation on £35m Private Placement

About The United Westminster & Grey Coat Foundation

The United Westminster & Grey Coat Foundation (‘the Foundation’) was formed in April 2019 from the merger of United Westminster Schools and The Grey Coat Hospital Foundation. The Foundation comprises three private schools – Emanuel School in Clapham, Sutton Valence School, Maidstone and Queen Anne’s School, Reading – as well as two Academies – Westminster City School and The Grey Coat Hospital both of which are located in Victoria, London. 

The Foundation has roots formed in the 1570s when certain families within London and Kent decided to start schools for “the poor of the parish.” There have been many different configurations of its schools over the past centuries, but the Foundation currently seeks to carry out its core mission by delivering excellent education.

Transaction Overview 

The Foundation completed a £35m Private Placement debt financing, with a maturity of 30 years. Proceeds of the private placement were used to refinance existing bank debt, increase the Foundation’s investment portfolio and finance a significant element of the Foundation’s development plans for the private schools.

Centrus acted as the financial advisor to the Foundation, constructing a new financial model which consolidated the financial models of the three private schools, drafting an information memorandum and investor presentation, conducting meetings with selected investors and negotiating a Note Purchase Agreement.

“I am delighted that the Foundation has been able to raise new long term debt finance which will allow the Foundation to undertake a significant element of the Foundation’s development plans as well as increasing our investment portfolio. This will serve to enhance the schools’ facilities and benefit students at our schools for many years to come.

Centrus assisted the Foundation with some complex financial modelling and advised us through the private placement process ensuring that we achieved a long term financing on attractive terms.”

Toby Mullins, Chair of Trustees of the Foundation – The United Westminster & Grey Coat Foundation

For more information, please contact robert.stjohn@centrusadvisors.com

Centrus advises North London Collegiate School on £17m debt private placement

Overview

North London Collegiate School (NLCS) is ranked as one of the top independent schools in the UK, with an outstanding public examination record and exceptional university entrance record into Oxbridge, Ivy League and Russel Group Universities. It was founded in 1850 by Francis Mary Buss, the pioneer in girls’ education, as the first academic girls’ day school in the UK.

Source: North London Collegiate School

Centrus Solution

NLCS has successfully raised a £17m debt Private Placement with a maturity of 30 years on attractive terms placing NLCS in a strong position to fulfil their long term plans and aspirations, including improving and expanding its teaching facilities.

Centrus acted as the financial advisor to NLCS, constructing a new financial model, drafting an information memorandum and investor presentation, conducting meetings with selected investors and negotiating a Note Purchase Agreement.

“Many thanks to Centrus for all the help you have given us. We were very impressed by the team’s professionalism – it has been a great pleasure and very enjoyable working with you. Great result overall!”

Ian Callender, Chief Operating Officer – NLCS

For more information, please contact robert.stjohn@centrusadvisors.com