Fizzy Living picks up £32.4m refinancing

Private rented sector landlord Fizzy Living has agreed a refinancing of its four current projects in its portfolio. Pricoa Mortgage Capital has agreed the £32.4m package that will fund its current live projects, freeing up capital to further grow the business.

The deal shows how strong the demand is from funders, for well let private rented homes. “This portfolio offers a compelling combination of excellent quality assets, good locations and stellar sponsorship,” said Aaron Knight, director of European debt obligations at Pricoa Mortgage Capital. “For the foreseeable future, our appetite for portfolios like this one will exceed the supply and we look forward to seeing more opportunities in this space and to the expansion of our relationship with Fizzy over the coming years.”

Julian Turner, deputy finance director and head of treasury at Fizzy’s parent company Thames Valley Housing, revealed that the deal provides low rate finance over the medium term: “With interest rates at historic lows, this debt funding has been put in place at under 3% over ten years. This is made possible as Fizzy has already established a solid track record and is generating performance that not only satisfies but attracts the senior debt market. Its portfolio is operating at optimum level in a market that is poised for further substantial growth.”

Geeta Nanda, chief executive of TVH, commented, “This is another great first for Fizzy and Thames Valley Housing. Having first shown that PRS is deliverable in the UK, this demonstrates that the strength of the Fizzy model is extremely attractive to equity and third party debt investors alike. We are delighted to have conducted this debt package with Pricoa Mortgage Capital who are a new player in the market, and hope that it will be the beginning of a long term partnership.

It was in March 2014 that Fizzy agreed a £200m funding package from Silver Arrow, part of the Abu Dhabi Investment Authority, to support its expansion. To date, the brand has flats to rent at sites in Poplar, Epsom, Canning Town and Stepney Green.

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