Fiduciam has recently finalised a £16 million financing deal aimed at transforming a London property into desirable student accommodation. This funding arrangement combines acquisition and refurbishment financing, enabling significant upgrades before the property is occupied by university students.

A seasoned real estate investment group, known for revitalising underperforming assets, is at the helm of this project. With the financial injection from Fiduciam, the group is set to refurbish the property, enhancing its appeal and functionality for student living. The finance package, spanning 30 months with an interest rate of 0.90% per month and set at a 65% loan-to-value (LTV) ratio, is designed without exit fees, offering flexibility to the borrower.

Marc Morris, Fiduciam’s underwriting manager, expressed enthusiasm about supporting the experienced borrower’s initiative to meet the growing demand for student accommodation in central London. The project aims to not only provide quality housing for students during term times but also to utilise the space for business and tourism purposes during academic breaks, thereby maximising income potential.

The loan arrangement also supports the borrower by covering both acquisition and refurbishment costs, in addition to offering interest coverage as the property begins generating income. With the option for early repayment after 12 months without penalties, the borrower is afforded further flexibility should the property’s performance exceed expectations.

Fiduciam’s commitment to this project underscores its role in facilitating strategic real estate developments in the heart of London, as highlighted by Carl Jabbour, COO of Fiduciam. The investment management group spearheading this venture is poised to add a valuable asset to its portfolio, contributing to the broader landscape of student housing in the city.