Fiduciam lends £19.4m for PBSA schemes in the UK and the Netherlands

Fiduciam has provided two loans totalling £19.4m for two student accommodation schemes in the UK and the Netherlands.

The schemes will offer a total of 701 new or recently refurbished student rooms — 261 in north east England and 440 in the south of the Netherlands — together with student hubs, cinema rooms and commercial spaces.

Both facilities were agreed at an average interest rate of 0.60% per month, with LTGDVs peaking at 64%.

Fiduciam aims to significantly expand in the PBSA area and looks to fund various other large schemes with experienced operators and developers, particularly sustainable projects featuring innovative methods of construction.

Bardo van Hoogen, country manager for the Netherlands at Fiduciam, said: “We seek 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. 

“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.”

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