FizzyLiving secures landmark funding from Macquarie Capital

FizzyLiving, the wholly owned subsidiary of Thames Valley Housing Association (TVH), and the first company in the UK designed specifically to service the needs of young professionals seeking accommodation in the private rental sector (PRS), has secured debt funding from Macquarie Capital.

The funding will provide FizzyLiving with a war chest of £70m and expedite its progress toward the goal of owning and operating 500 PRS units within the next 24 months, prior to securing longer term institutional capital to grow the portfolio.

Harry Downes, Managing Director of FizzyLiving, said, “Our vision is to create a product and brand associated with excellence that satisfies the requirements of aspirational young professionals. In lending to FizzyLiving, Macquarie has recognised the strong fundamentals and significant growth potential of PRS in the UK. From an operational point of view, we are now fully focused on finding and buying more sites and so the message to developers and local authorities alike is that we are actively seeking new opportunities that will enable us to deliver the units to fulfil the significant demand.”

Jack Stephen, Finance Director and Deputy Chief Executive of TVH, commented, “In a financial climate where funding is scarce, it is encouraging to know that the Fizzy concept is as attractive to the financial market as it was to TVH when we invested our original £30m last year. Our next goal is to bring in institutional investment of between £200m – £300m, which will take us to 1,000 units, and Macquarie will be working alongside us to achieve this. We know that the appetite is out there from our conversations with other funders who are keen to capitalise on the quantum shift towards the rental sector and Fizzy, being the only company of its kind currently operating, is ideally placed to benefit from this interest” Since its launch at the beginning of 2012, FizzyLiving has acquired two developments; in January, 63 apartments at Solum Regeneration’s Epsom Station development; and in the Spring, a 12 storey tower of 75 apartments at ECF’s Vermillion development in Canning Town, close to Canary Wharf, London. FizzyLiving Canning Town was launched in September 2012 and FizzyLiving Epsom Station will be launched at the end of January 2013.

Macquarie Capital Real Estate provides global coverage and on the ground expertise across key markets in Europe, North America, Asia Pacific and the Middle East. Services include private and public M&A, public and private capital raisings, and restructurings and recapitalisations.

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Editors notes

Thames Valley Housing Association (TVH), based in Twickenham, South West London, was founded in 1966.The association owns, manages and administers loans for over 14,000 properties in London, Berkshire, Surrey, Hampshire, Oxfordshire, Buckinghamshire, Wiltshire and Sussex. Thames Valley Housing provides affordable rented homes, shared ownership, market rent, student and key worker accommodation, working with eight NHS Trusts. In the year 2011-12 the association provided 817 new homes, comprising 370 socially rented and 447 shared ownership homes, and generated a financial surplus of £17.64 million, 108% higher than the previous year.

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