DRC Savills IM provides senior loan for student accommodation

DRC Savills Investment Management LLP, 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 (Princeton).

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.”

Robert Kleinman, CFO at Brotherton added:

“We are thrilled to have worked alongside DRC SIM to arrange this financing package for our client Princeton against a challenging macro environment. Princeton have delivered a fantastic PBSA scheme, achieving impressive occupancy within the first academic year, and anticipated to deliver strong rental growth.

“DRC SIM has proven its ability to act quickly and flexibly, and we thank them for the teams’ support throughout this transaction. We continue to see a strong lending appetite within the PBSA sector, with an increasing number of mandates across both the UK and the European market.”

DRC SIM was legally advised in the transaction by Burges Salmon (UK) and Cuatrecasas Gonçalves Pereira, S.L.P.(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.