The facility supports the investor's property acquisition plans
Bridging and development lender Fiduciam has recently provided a £25 million committed portfolio acquisition facility to a property investor.
The facility supports the investor’s property acquisition plans for the first half of 2023 and beyond, which involves the creation of a large new cross border portfolio. It also provides the investor with funding and liquidity certainty, putting him in an optimal position as acquisition opportunities arise.
The lender said that with a comprehensive set of pre-agreed property selection criteria in place, the facility is entirely mechanical and as long as the property meets the pre-agreed criteria, the investor is guaranteed funding.
The facility envisions commitment increases beyond the initial £25 million as acquisition opportunities require. Properties can be purchased in the UK, Spain, and France with individual sterling or euro loans under the facility.
Over the five-year facility term, property acquisition loans can be provided at up to 70% loan-to-value (LTV) at interest rates from 0.73%, depending on property location and the level of the one-year swap rate.
Fiduciam said it expects to complete more committed portfolio facilities over the next six months as property investors prepare to seize opportunities created by market turbulence by first obtaining secure fast turnaround funding.
“Turbulence in the property and lending markets will be major themes of 2023,” Johan Groothaert (pictured), chief executive at Fiduciam, commented. “Therefore, we expect to sign up a number of top-performing property investors to our committed portfolio facility solution over the next few months, allowing them to acquire multiple properties during the market sell-off with pre-agreed funding criteria.
“As always, every downturn also brings opportunities, and we are eager to assist with an innovative committed facility solution.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter.
