The borrower, a real estate investment group, has an established track record in acquiring underutilised assets and restoring trading performance.

The £16m Fiduciam loan provides funds to complete refurbishment works prior to university occupation and time to establish a track record of rental income. 

The facility has a 30-month term and an interest rate of 0.90% per month without exit fees at 65% LTV.

Marc Morris, underwriting manager at Fiduciam (pictured above), commented: “Fiduciam was delighted to support an experienced institutional borrower to deliver their latest project in central London. 

“The borrower has efficiently matched an acquisition opportunity with end-user demand and will deliver additional sought after student accommodation.

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“The property’s income potential will be maximised by providing beds for the university during term-time while deploying the asset for business and tourism accommodation during university holidays.

“Our flexible funding helps the borrower maximise the project IRR by reducing the required initial cash investment.

“The Fiduciam facility assists with acquisition and refurbishment costs whilst also providing interest coverage as property income is established.

“The borrower benefits from the comfort of a 30-month facility but can repay the loan after 12 months without early repayment charges if property performance allows a swifter exit.” 

Carl Jabbour, COO at Fiduciam, concluded: “We were delighted to support this established investment management group with their latest opportunistic real estate project in central London.”