Fizzy, the leader in the Private Rented Sector (PRS) has announced that it has completed third party debt refinancing across its four existing schemes. The financing package, which totals £32.4m and has been completed with Pricoa Mortgage Capital will provide Fizzy with new funding to invest in further development opportunities in addition to existing capital commitments.
Geeta Nanda, Chief Executive Officer of Thames Valley Housing commented, “This is another great first for Fizzy and Thames Valley Housing. Having first shown that PRS is deliverable in the UK, this demonstrates that the strength of the Fizzy model is extremely attractive to equity and third party debt investors alike. We are delighted to have conducted this debt package with Pricoa Mortgage Capital who are a new player in the market, and hope that it will be the beginning of a long term partnership.”
Julian Turner, Deputy Finance Director and Head of Treasury at Thames Valley Housing, added, “With interest rates at historic lows, this debt funding has been put in place at under 3% over ten years. This is made possible as Fizzy has already established a solid track record and is generating performance that not only satisfies but attracts the senior debt market. Its portfolio is operating at optimum level in a market that is poised for further substantial growth.”
Aaron Knight, Director of European Debt Originations at Pricoa Mortgage Capital, added, “This portfolio offers a compelling combination of excellent quality assets, good locations and stellar sponsorship. For the foreseeable future, our appetite for portfolios like this one will exceed the supply and we look forward to seeing more opportunities in this space and to the expansion of our relationship with Fizzy over the coming years.
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Notes to editors:
Fizzy is owned by Thames Valley Housing (TVH) and Silver Arrow. Fizzy has received an initial capital commitment of up to £200m from Silver Arrow, an investment entity owned by Abu Dhabi Investment Authority (ADIA), in addition to existing capital from TVH.
Secure rental income streams make the project very attractive to developer and bank investors. Developers will have the opportunity to invest into the scheme through offering rental stock assets in return for equity, which will generate an income.
Brand marketing of the property portfolio will be financed by Fizzy. The aim is to provide a brand associated with high-quality private rental accommodation
Click here for an animated infographic on what Fizzy delivers: www.vimeo.com/fizzyliving/getfizzy
Thames Valley Housing Association:
Thames Valley Housing is based in Twickenham, West London and delivers housing for a wide range of people. Founded in 1966, the association manages and administers over 14,500 properties in London, Middlesex, Berkshire, Surrey, Hampshire, Oxfordshire, Buckinghamshire, Wiltshire and Susses, and has over 1,000 properties under construction.
Thames Valley Housing aims to meet the aspirations of all our customers and residents, helping them to get the home they want or need at the outset, providing further opportunities to move or buy
later should they wish. It provides affordable rented homes, HomeBuy, market rent and key worker accommodation, including the staff accommodation for eight NHS Trusts.
Fizzy Developments against which the debt package has been secured are:
In Spring 2012, Fizzy acquired its first residential tower of 75 apartments at ECf’s Vermillion scheme in Canning Town.
Close to Canary Wharf and within a few minutes’ walk from Canning Town station, Vermilion is a development by ECF (English Cities Fund), a joint venture between Muse Developments, the Homes and Communities Agency and Legal and General. The apartments at Fizzy Living’s residential tower comprise 38 one-bedroom, 35 two-bedroom and two three-bedroom apartments, costing from £1,200 pcm, £1,550 pcm and £2,100 pcm respectively.
Following the success of the launch of its first apartment block in Canning Town Fizzy acquired its second development in Epsom, offering 63 one and two bedroom apartments, costing from £1,000 pcm and £1,285 pcm respectively
The Epsom apartments offer an outstanding location, adjacent to the station and with a Tesco Metro, Costa Coffee and Virgin Active health club either within the building or just moments away. With a train to Waterloo every 15 minutes, which stops at Clapham Junction and Vauxhall for connections to overground and the tube, the area is extremely popular with commuters.
All the apartments were let within six months of its launch in late February. As well as proving popular with its target market of young professionals, the Epsom development has attracted families and single mature tenants as well.
Fizzy acquired its third site, purchasing 45 units from Bellway Homes within a single building at the New Festival Quarter development in Poplar.
The scheme comprises of one, two, and 3 three bedroom flats, costing £1,350 pcm, £1,600 pcm and £2,150 pcm respectively. On-site facilities will include a gym, concierge, underground parking and landscaped gardens. The site offers outstanding transport connections with Langdon Park and All Saints DLR stops less than a 5 minute walk away, and a 15 minute walk to Canary Wharf. Attractions such as Westfield shopping centre, the O2, and Excel Exhibition centre are all within easy reach by public transport.
Stepney Green (City)
Fizzy completed on its fourth scheme at Stepney Green in March 2014, and purchased a 63 unit building in the award-winning VIVO building.
The scheme comprises of 63, one, two and three bedroom flats available for rent, costing from £1,500 pcm, £1,700 pcm and £2,500 pcm respectively. Fizzy Stepney Green is just 3 minutes away from Stepney Green tube station allowing quick and convenient access to the City, Canary Wharf, Shoreditch and Stratford.