Fiduciam works across European borders to finance complex corporate acquisition

By Bridging Loan Directory 20th February 2020

Bridging lender Fiduciam has closed a complex cross-border loan with a transaction value of €10m in the student accommodation sector, involving the acquisition of two Luxembourg companies each owning a large German student home.

The two properties, which house around 200 to 250 students each and have a value of €20m, were acquired by an award-winning UK student housing group through a corporate transaction. The group which had previously been managing the flats was given a unique opportunity to purchase the property at a price that meant the loan had to be completed quickly.

Fiduciam’s teams in the UK and Germany worked over the Christmas period to complete the loan within six weeks of the sale and purchase agreement being signed, helping the buyer to deliver within a restricted timeframe, so as not to lose its deposit.

Working to overcome various constraints, the biggest of which were the legal framework and the share acquisition financing involving three jurisdictions, Fiduciam had to continually communicate between the borrower, a second charge lender, the seller and their respective legal counsels and corporate advisors across the three jurisdictions. It also had to align the UK closing and signing procedures with Luxembourg and German closing and notarial requirements.

Fiduciam first introduced bridging finance solutions to German SMEs in 2019 and has witnessed a strong uptake thanks to its dynamic and flexible approach.

Marieke Eskens, pictured, who has recently been promoted to Fiduciam’s board of directors, underwrote the transaction and commented:

“Lending to enable cross-border corporate acquisitions requires specialist knowledge and experience. The team here at Fiduciam not only understood what had to be done to get this loan over the line, but also how to do it in the imposed timeframe.

It was a one-off opportunity for the client and the added risk that other interested parties might emerge made it a race against the clock. In total we coordinated eight legal counsels, three notaries and two accountancy firms involved in representing the interested parties across all three countries. Continuous attention to detail ensured the financing structure and security package work seamlessly across three jurisdictions. With this transaction Fiduciam demonstrated that its bridging loans are a helpful addition to the corporate finance toolkit.”