mhs homes completes multiple financings to support growth plans and ambitions

mhs homes group (“mhs”), provides over 9,500 homes on the south side of the Thames Estuary in North Kent and is the largest independent social landlord in the UK. mhs has ambitions to develop 600 new homes over the next 5 years. Its ultimate ambition being, to help end the housing crisis in North Kent by providing safe and sustainable homes.

mhs obtained new long-term fixed rate funding via arranging £90m of private placements in the capital markets, from two separate investors, PIC and Legal & General Investment Management.

One of the investors is new to mhs, demonstrating strong appetite and recognition for the strength of mhs. mhs has also taken the opportunity to restructure £140m of bank facilities to improve previous terms, creating flexibility and adapted for future needs. In addition, a further £40m in liquidity funding was arranged.

This new and restructured funding results in reduced long term interest rate and refinancing risk, as well as enhancing capacity to develop new homes and meet long term net zero commitments.

Reflecting the challenging market environment, a dynamic approach was taken in engaging with existing and potential bank funders as well as investors, allowing optimal outcomes to be achieved. This included a clear focus on Value for Money, balancing funding costs, with terms which maximised long term flexibility, while being agile to market changes.

Centrus guided mhs throughout, from development of the strategy to implementation including arranging the funding, ensuring mhs agility to take advantage of opportunities in volatile market conditions. Trowers & Hamlins acted as legal advisor on documentation for both the bank and PP processes, as well as on security.

Bruce Shelmerdine, Finance Director at mhs Homes “We are absolutely delighted with the outcomes achieved. The new funding and restructured banking portfolio provides us with a very solid treasury foundation o to support our growth plans and aspirations, while improving the financial resilience and risk management of the organisation.”

Sam Goldman, Director at Centrus “This highly successful project enhances mhs’ long term capacity and viability, increasingly important in the current environment, and Centrus is delighted to have delivered these excellent outcomes working in close partnership with mhs.”

Eleanor James, Partner at Trowers & Hamlins “Trowers have been privileged to advise mhs on funding and security matters since the transfer. We were delighted to support mhs again in delivering this funding package for its future, including its first sustainable loan”