Specialist Fiduciam has completed a €5.5million loan in Spain in just three days, taking its volume of lending in Spain up to more than €10 million in May.
The loan, completed in three days, was to finance the development of two luxury villas in Marbella and has an 18-month term with an interest rate of 0.80% per month.
Cristina Villén (pictured), Fiduciam’s originator for Spain, said: “We have had a strong start to the year, and we are expecting to surpass our €40 million lending target for 2019 in Spain.
“There is a large untapped demand for our loans in Spain and it is great the brokers are helping us to get our name out there.
“We were very impressed with Cavendish Capital who brought us this transaction and drove the application process.”
Fiduciam said it is seeing strong demand for its bridging product in Spain, particularly from foreign nationals who have moved their property development activity to Spain.
The banks in their country of origin cannot take Spanish mortgages, and the Spanish banks are less likely to grant loans to foreign nationals, particularly if the developer has only moved recently to Spain, or divides their time between their country of origin and Spain.
Fiduciam is also seeing increasing demand from Spanish nationals and real estate companies as its bridging product becomes more widely accepted in Spain.
Clint White, head of property lending at Fiduciam, said: “We continue to expand our Spanish team in London.
“Our systems are set up to deal with multi-currency and multi-jurisdiction loans, so it is the same effort for us to grant a loan in Spain than in the UK.
“As Spain has seen more deleveraging than many other European countries and its real estate market is still in the recovery stage, we expect this strong demand to continue.”
George Esquiant, director at Cavendish Capital brokered the loan. He added: “It has been a pleasure to work with Fiduciam on this loan.
“This transaction demonstrates that we can find suitable solutions for the very diverse needs of our client base by tapping into the wide array of UK-based bridge lenders.”