Fiduciam provides €30m to Mallorcan developer

By Bridging Loan Directory 16th February 2023

Fiduciam, the institutionally funded bridging and development lender, has provided an additional €30m to a real estate developer in Mallorca for its six new ground-up projects.

The six luxury villas will be constructed in one of the Mallorca’s most sought-after locations and are set to raise the bar for real estate development on the island.

Fiduciam has funded the developer since 2019 and expects the latest projects to be completed by Q2 2024.

The developer is led by two professionals with considerable real estate development experience in London and Mallorca.

One of the partners previously worked as a realtor for Engel and Völkers and provides extensive local market expertise.

The other partner has 20 years of luxury development experience and was formerly global project director for Candy & Candy.

In July 2022, the developer secured additional equity and mezzanine finance to support their expansion through a partnership with a family office.

This transaction therefore spanned three jurisdictions – Spain, Denmark and the UK – and benefitted from Fiduciam’s established capability to offer tailored cross-border solutions to match the clients’ needs.

A bespoke inter-creditor agreement was required to satisfy the family office’s investment objectives whilst protecting Fiduciam’s senior-secured position.

At the same time, the finance costs were reduced by embedding flexibility within the finance documentation which allows pre-sale deposits to be used towards financing the works.

Valeria Quintana Barbella, Fiduciam’s Spanish underwriting manager, commented:

“It took hard work and lateral thinking to structure the funding of this ambitious development programme and keep all the stakeholders’ incentives aligned.

With the developer’s commitment to quality, sustainability and attention to detail, these six new villas will be a true testament to the developer’s passion for excellence and they will set a new standard for luxury living in Mallorca. Fiduciam is glad to participate.”

Estela Lopez Bergua, finance associate at Fiduciam, added:

“The legal and financial structuring of this transaction was highly complex, and we demonstrated that we were up to the task, against very tight deadlines.

Of course, the prospect of further site visits in Mallorca is a plus!”