In 2022, Fiduciam set out ambitious targets to expand it’s offering in Scotland, and in the following 12 months its Scottish team has seen enquiries reach a level to compete with markets in which Fiduciam has been established for a long time. Offering bridging loans, development finance and commercial mortgages across Scotland, the team have explored projects from the Borders to Skye, and in May alone Fiduciam granted £7,000,000 in Scottish development finance.
Offering clear examples of Fiduciam’s product offering, the funding comprised two development loans for two separate experienced developers in prime central Edinburgh. The transactions combined refinancing their existing lenders and fully funding the conversion of the properties into residential and commercial uses respectively. Fiduciam was able to facilitate both transactions at a fixed monthly interest rate of 0.83%, a term of 24 months, and a loan amount equal to 65% of the gross development value. Fiduciam’s Scottish development finance product also caters for commercial property development, which many developers typically find harder to finance than residential development, as the gross development value partially relies on the projections in the business plan.
Both developers were new to Fiduciam’s Scottish development finance product, having been introduced through development and bridging finance brokers. They were able to demonstrate their strong track records and experience of similar projects, and in the case of the commercial development, the solidity of their business plan, to give Fiduciam’s team comfort that each project would be a successful scheme.
Johan Groothaert, CEO commented: “Since increasing our focus on Fiduciam’s Scottish development finance business, we have not only seen a remarkable range of SMEs, house builders and businesses reach out, but the strength of these borrowers has been consistently impressive.”
Fiduciam’s experienced underwriting team, with strong local knowledge and understanding of the Scottish market, alongside their streamlined credit approval process allowed the facilities to be completed smoothly, efficiently and quickly. This process ranges from obtaining initial risk approval and completing comprehensive know-your-customer due diligence, to finalising a legal and valuation review and gaining full credit approval.
Marc Morris, Senior Underwriter commented: “High quality lending decisions are driven by strong credit fundamentals, excellent local knowledge and well-integrated professional advice. Fiduciam combines internal and external expertise to deliver economic solutions to each deal’s unique challenges, from heritage listings and partial rebuilds to new business models and cross jurisdictional legal structures. Our two latest Scottish development finance completions in central Edinburgh show our robust confidence in the Scottish market and our commitment to supporting dynamic local developers with strong growth potential”.
Fiduciam collaborated with Morton Fraser to finalise the legal documents in record timing. Graham & Sibbald, who have previously worked with Fiduciam on Scottish bridging and development loans, provided expert valuations of the properties. Fiduciam then worked with Emerson Bond to review and certify the development works costs funded by the loans.
Fiduciam’s Scottish development finance solutions are flexible and tailored to each client’s specific requirements, offering an attractive result in situations where urgent funding is required, to complete acquisitions or to develop both residential and commercial properties.