Fiduciam provided £19.4 million of funding for student accommodation across Europe in the last month.
The two schemes will offer a total of 701 new or recently refurbished student rooms in the United Kingdom and the Netherlands. The average interest rate is 0.60% per month and the Loan to Values peak at 64%.
Fiduciam regularly assists the owners and developers of student accommodation schemes to achieve their planned exits, such as sale to pension funds and other institutional investors. Loan terms are typically between one and three years.
Bardo van Hoogen, country manager – The Netherlands, said: “Fiduciam seeks to provide funding that allows small businesses and entrepreneurs to seize upon business opportunities not possible with traditional bank finance.
“In the Netherlands, developers of affordable housing and student schemes frequently seek Fiduciam’s assistance when time is limited and there are planning or other complexities. For example, developers may seek to sell their projects pre-build, utilising purchase-contractor agreements, or ‘koop-aannemingsovereenkomst’, which combine purchase and construction contracts.
“Our latest student accommodation loan was completed in 10 days and before irrevocable planning consent was in place.”
Marc Morris, underwriter at Fiduciam, added: “Lending on large student accommodation or affordable housing schemes requires a strong understanding of local demand and supply dynamics as well as national trends. Fiduciam’s detailed underwriting process provides an enhanced opportunity to consider individual assets and business plans on their merits.
“A key strength of the scheme we funded in the United Kingdom was the property’s price-per-bed, which was significantly below new-build development viability. This position accompanied by strong occupancy numbers highlighted the strength of a regional asset that other parties were hesitant to fund.”
