BCMGlobal has facilitated a deal for a senior debt funding facility of up to £100m

BCMGlobal has facilitated a deal for a senior debt funding facility of up to £100m for Fundamentum, an Investment Advisor specialising in the UK Supported Housing market, from AgFe, the fixed income innovators.

Fundamentum specialises in creating and managing Supported Housing assets across the UK, in partnership with Housing Providers and Local Authorities for the UK’s most vulnerable people, including those with learning disabilities, autism, the homeless and adults with mental health struggles. Fundamentum continue to focus their efforts on responsible investing and have become an early adopter of The Sustainability Reporting Standard For Social Housing (SRS) further confirming their commitment to improving ESG reporting frameworks and collaborating with like-minded partners within the Social Housing Sector.

BCMGlobal’s Real Estate Finance team, experts in sourcing, securing, and structuring real estate finance for investors and developers, was tasked with sourcing a long-term Senior Loan to support the establishment of these portfolios.

BCMGlobal worked closely with AgFe, the asset manager and investment advisory firm specialising in fixed income innovation, to agree initial senior debt funding of £24m. With part of BCMGlobal’s ambition to establish long term relationships with suitable lenders, AgFe and Fundamentum have expressed a mutual desire to work together over the longer term to grow both portfolios, and as such additional debt funding up to a total of £100m is expected to follow as additional assets are acquired. This will allow for the development of more social housing in the UK, as well as strong investment returns for the funds.

Tim Schuy, Head of Real Estate Finance at BCMGlobal, comments:

“With ESG at the forefront of the investment agenda, we’re proud to have worked with Fundamentum and AgFe to secure a deal which provides not just great investment outcomes for those involved, but also improves the UK’s social housing landscape and has a positive social impact. We pride ourselves on our targeted process, which helps move transactions along quickly and efficiently, and in delivering excellent outcomes for our clients and their funding partners.”

A spokesperson at Fundamentum, added:

“There are more than a million households on Local Authority waiting lists and this number is increasing each year so there is an enormous amount of work to be undertaken in order to meet this need. We’re grateful to BCMGlobal for supporting us in sourcing the funding to continue to provide appropriate housing to those most in need. We look forward to continuing to work with both BCMGlobal and AgFe in the years to come.”

Xin Zhang, Partner at AgFe, comments:

“Fundamentum is doing excellent work in an important sector, which we believe creates a significant investment opportunity for our clients looking to make their money matter. We are pleased with the outcomes of the funding deal thus far, and look forward to supporting the portfolios as they develop and grow over the coming months.” 

Tim Schuy
Tim Schuy

Market Trend Analysis Report 2021

A huge two thirds (64%) of real estate lenders anticipate new loan originations to increase this year

  • More than half of real estate lenders (52%) expect to expand their team in 2021
  • The majority (69%) consider COVID-19 to be the key risk factor to the UK commercial real estate market for 2021
  • Availability of loans has dropped across all sectors except Industrial / Logistics
  • Ireland is registering the biggest surge in appetite among real estate lenders with a 14% increase on 2020, taking it ahead of Western Europe as the most popular non-UK European location.

While COVID-19 sits at the top of the risk pile, the sector appears to have settled when it comes to the impact of Brexit. Last year, more then two thirds (77%) identified Brexit uncertainty as the main market risk, but this has plummeted to just 2% in 2021.

Tim Schuy
Tim Schuy