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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

Centrus advises settle on £75m ESG-linked funding

Transaction Overview

settle has arranged a £75m RCF with National Australia Bank (“NAB”), of which £25m is unsecured. Both the ESG linkage and unsecured structure are a first for settle.

The leading Housing Association of around 10,000 homes, will use the additional liquidity and funding offered by this facility to continue its delivery of high-quality affordable homes across Hertfordshire, Bedfordshire, Buckinghamshire and South Cambridgeshire.

Centrus acted as sole advisor to settle and arranged the RCF.

Centrus Solution

  • We took a focused approach to the market, ensuring the terms were achieved, evaluating all offers against both cost vs tenor and strategic fit.
  • Centrus successfully negotiated a facility that is low cost, covenant friendly, and paves the way to move towards an unsecured structure in the future; the lender will also be able to lend more in the future which provides a good strategic fit.

Added Value

Whilst still relatively new to the sector unsecured facilities are increasing in prevalence. The attraction is two-fold; it offers increased agility whilst reducing operational complexity. Both are important for settle.

The ESG KPIs align with settle’s social purpose, ranging across the delivery of affordable properties, energy efficiency, and social impact.

Building more affordable housing is a key priority for us, and this new funding will go towards helping to meet the growing needs of the communities we serve.

“Centrus support and advice has been excellent throughout the process. Their expert market knowledge and project management has been instrumental in helping us achieve our funding objectives as well as being a leader in unsecured funding.”

Ebele Akojie, Finance Director – settle

“settle are a forward looking dynamic organisation that we are delighted to have supported in raising this innovative funding with NAB. The facility has quickly unlocked delivery of additional new homes. Centrus has been at the forefront of developing the RP market for both ESG-linked and unsecured where the ability to reduce borrowing costs and minimise security charging work offers tangible benefits.”

John Tattersall, Senior Director – Centrus

For more information, please contact john.tatterall@centrusadvsiors.com

Centrus advises Curo on £100m private placement to deliver new affordable homes

Transaction Overview

Bristol and Bath-based housing association, Curo has secured a new £100m fully deferred private placement from Scottish Widows. The facility will be drawn in two tranches; £40m in 2024 and £60m in 2025, in line with the development of Curo’s affordable homes programme.

The Housing Association aims to work with residents and partners to face external challenges and to deliver their purpose of “Homes for Good”.

Source: Curo

Centrus Solution

With a funding requirement not arising until 2024 and significant volatility in the macroeconomic environment, Centrus advised Curo that moving quickly to secure funding in advance could de-risk its programme significantly. Centrus supported as financial advisor throughout the process, leading on both delivery and execution.

Centrus lead the selective marketing process, engaging only with those investors which could provide the deferred funding, quantum and covenants required.

Added Value

  • Centrus effectively identified and negotiated the optimal terms for Curo in a short time period, ensuring the right fit with their Corporate Strategy and growth ambitions.
  • Deferred tranches will enable effective delivery of Curo’s programme over the next five years, whilst avoiding the heavy cost of carry by drawing the full £100m day one.
  • Both an EBITDA only interest cover ratio and limited restrictions on intra-group activities will be essential in delivery of the programme and Curo’s wider group activities.

“It is always a pleasure working with Curo and it was great to be able to deliver a suitable structure quickly and efficiently. This deferred funding will enable Curo to maintain its properties to a high standard and continue to grow with confidence.”

Lawrence Gill – Director, Centrus

For more information, please contact Lawrence.Gill@centrusadvisors.com

Centrus arranges £60m private placement for Irwell Valley

About Irwell Valley Homes 

Irwell Valley Homes is a leading registered provider in the North West, with a direct relationship with 20,000 people who live in its over 7,000 homes. With an ambitious vision to deliver over 1,000 new homes over five years, whilst continuing to invest its existing homes on the journey to decarbonisation, a requirement for new long-term funding was identified.

Centrus Solution 

Centrus worked closely with Irwell Valley throughout the process, from producing a ‘teaser’ for initial market testing, to compiling the Investor Presentation, selection of the preferred investors and closing out the transactions and documentation. The process enabled Irwell Valley’s leadership team to convey its strong credit story, its clear vision and its ESG journey to drive optimal terms.

Multiple funding offers were received, resulting in a highly competitive pricing process and ensuring that Irwell Valley was able to achieve the funding structure it had set out to despite a challenging market backdrop. The £60m, 40-year private placement with Scottish Widows, comprised three £20m deferred tranches at 6, 12 and 18 months, enabling funds to be received when required while locking in the rate at the outset.

“With the rising cost of living, building more affordable housing and making existing homes more cost effective for our customers are key priorities for us. We are delighted to have secured this funding to help meet the growing needs of the communities we serve across Greater Manchester.”

Helen Nicholson, Executive Director of Finance and Governance – Irwell Valley Homes

“Centrus is delighted to have worked with the Executive and Board of Irwell Valley Homes to deliver this successful transaction. The funding provides long-dated, fixed rate funding to de-risk the financial plan, and support Irwell on its ambitious journey.”

John Tattersall, Senior Director – Centrus

For more information, please contact john.tatterall@centrusasvisors.com

Grand Union Housing Group implements titanTreasury

Overview 

Grand Union Housing Group (“Grand Union”) has successfully completed the implementation of titanTreasury, the Treasury Management System (TMS) delivered by Centrus. ​

​The housing association provides 12,000 homes for more than 27,000 people across Bedfordshire, Buckinghamshire, Northamptonshire and Hertfordshire and aims to build nearly 2,000 more new homes in the next 5 years. 

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 team supported Grand Union throughout the implementation, taking the time to understand specific goals and objectives. ​

Advised on best practices to add value and efficiency to Grand Union’s current treasury process, the client team are now well trained and prepared to use titanTreasury for their day-to-day activities, including month end and regulatory reporting. 

titanTreasury Benefits

  • Immediate access to accounting entries and forecast results​
  • Control of liquidity and cash payments​
  • Smart tracking of payment schedules and due dates​

With streamlined financial operations, Grand Union is in a better position to focus on targets which include building more affordable homes, stronger communities and better lives for tenants. 

“titanTreasury has revolutionised the way we manage and control our treasury portfolio. It provides us an effective and efficient way to control and validate interest budgets and the reporting functionality enables us to not only take control of our performance reporting in the treasury area but also enable quicker and more informed decision making.​

The implementation project ran very smoothly and the Centrus team were very professional in their systematic approach. This ensured we were kept up to date with project progress, meant any issues were resolved promptly and deadlines were met. I would not hesitate to recommend the platform or the Centrus implantation team based on our experiences.​”

Chris Bellamy, Director of Finance & Treasury – Grand Union Housing Group ​

For more information on titanTreasury, please contact Gilles Bonlong, Director at Centrus.