London, 09 December 2014
Macquarie Lending has arranged and executed a £35 million stretch senior financing facility for Victus European Student Accommodation Fund (“Victus”), which owns nine student properties across Europe.
The facility was structured flexibly to allow for an equity release to fund future developments as well as to enable Victus to refinance existing property development debt. The financing was executed in a timely manner within a six week period. The facility is secured against three high-quality city centre assets in Bristol and Newcastle. Two buildings recently achieved practical completion and are fully rented with the third building due to be completed in late 2015.
Neil Hasson, Head of Macquarie Real Estate Lending, Europe said: “We are pleased to be able to provide this financing package to Victus. The high calibre of their projects and the solid outlook for the student accommodation sector allowed us to structure the loan to assist the borrower in pursuing ongoing development opportunities.”
Andrew Henton, Chairman of the Victus Board said: “Macquarie Lending’s ability to execute bespoke and complex deals meant that this facility was structured in a way that supports our overall strategic direction. The student accommodation sector presents significant opportunity for investment in key university towns across the UK and Europe. The strong return on these types of properties has been well-reported but there is still significant undersupply of quality stock in prime locations. We are ideally placed to take advantage of and maximise the opportunities in the market.”
Cordet, a provider of private debt, direct lending and alternative funding solutions, partnered with Macquarie Lending to fund a minority portion of this refinancing facility.
This is Macquarie’s second student housing financing in the last 18 months having provided financing for King Square Studios, Bristol, in October 2013.
The Victus European Student Accommodation Fund IC Limited (“Victus”) is an open-ended fund registered with the Guernsey Financial Services Commission and listed on the Channel Islands Stock Exchange and was the first European Student Accommodation Fund to be launched. Victus has a target return of 9-12% and has achieved a growth in share value since its launch of over 27%. It achieves performance across four distinct areas – rental income from the assets, annual increases in rental income, capital appreciation of the assets and profit from the development assets themselves. Victus currently owns nine purpose built student accommodation properties across Europe with a value of over £100 million, with two additional assets in development due for completion in 2015, plus a healthy pipeline of future developments.
Crosslane Fund Managers LLP is the promoter of Victus and managed the process of securing the financing with Macquarie on its behalf. Crosslane Fund Managers is part of Crosslane, an international group of diverse businesses working across a number of sectors, with offices in the UK, France, The Netherlands, Singapore & Luxembourg and employing more than 150 people.
Cordet Capital Partners LLP (Cordet) was founded in 2013 by a group of financial industry leaders with the aim of providing private debt, direct lending and alternative funding solutions to mid-market companies in Northern Europe while also addressing the need of many institutional investors for attractive risk-adjusted core income-focused credit investment returns. Cordet originates, evaluates and structures its debt investments locally through offices in London and Stockholm and seeks to develop and maintain long-term and sustainable partnerships with borrowers, banks, intermediaries as well as business owners such as financial sponsors and entrepreneurs.
Bristol – Harbour Court
Bristol Harbour Court is modern, purpose-built accommodation. The 133-bed property is located close to the waterfront of Bristol Harbour and has a 3 year nomination agreement with the University of The West of England. The building comprises a mixture of en-suite cluster flats, studios and one-bedroom flats.
Newcastle – St James’ Point Phase 1 and Phase 2
St James’ Point is well located in the centre of Newcastle directly opposite St James’ Park football ground and next door to the new Business School of the University of Newcastle and only 1.12km (0.7 miles) from the main University of Newcastle campus. Phase 1 consists of 216 studios and Phase 2 will comprise an additional 203 units.