DRC Savills Investment Management (DRC SIM), the specialist real estate debt business of Savills IM, has provided a senior loan to re-finance Coliseo Europea, a 406-bedroom purpose-built student accommodation (PBSA) development in Madrid owned by Princeton Investments.
Located in Villaviciosa de Odon, a suburb 15km to the west of Madrid, the prime development provides accommodation for students attending the Universidad Europa de Madrid. For the academic year starting September 2023 the scheme achieved over 95% occupancy.
DRC SIM advised its European real estate senior debt (ERESD) fund series on the refinance of Coliseo Europea. The ERESD funds provide Senior Debt from between €15 mln to €75 mln for assets located across the UK and Western Europe at up to 65% loan-to-value.
Alan Lee, principal at Princeton said: 'We were delighted to have worked with DRC SIM on closing this complicated financing transaction, and look forward to working together.
'Princeton is actively looking for similar PBSA opportunities to meet clear and growing demand for high-quality accommodation.'
Trevor Homes, principal at DRC SIM said: 'This latest deal underscores DRC SIM’s active deployment of our senior debt strategy in high-performing real estate assets owned by high-quality sponsors.
'We are seeing strong opportunities in the market for selected deals on a disclipined underwriting basis and we are very well positioned to meet this demand.'
DRC SIM was legally advised in the transaction by Burges Salmon UK and Cuatrecasas Gonçalves Pereira, SLP in Spain.
Commercial advice was provided by Hollis, CBRE, Situs Asset Management, and Gallagher.
Brotherton acted on behalf of Princeton to source, structure and arrange the debt package and oversee execution of the loan.
