Grainger Invest Portfolio Refinancing
Centrus was appointed by Grainger Plc – the UK’s largest listed residential property owner and manager – to provide advice and support in closing the refinancing of an existing bank facility and ancillary interest rate hedging for the Grainger Invest property portfolio. The new £150m facility replaced an existing £120m facility achieving an 85bps margin reduction. The structure also enabled pricing benefits to be realised in the future at lower levels of loan to value. Centrus provided advice to Grainger in relation to selection of financing sources, negotiation of financing terms, and analysis of hedging strategies. We supported the company with performing risk analysis in order to assess the impact of different rate environments in the business and following that assessed hoe certain hedging strategies can be used to mitigate these risks. In addition to the above we supported the company in relation to derivative documentation negotiations and management of the hedging implementation process.