Fusion Group’s acquisition of Froomsgate House

IWG has advised the Fusion Group on its finance and funding arrangements as well as all property aspects relating to its acquisition of a 15-storey office building in Bristol, with the benefit of planning consent for the conversion into student accommodation.  The acquisition of the property, known as Froomsgate House, took place by way of the purchase of the entire issued share capital of the company holding the freehold title of the property.

As well as financing the acquisition, the funds raised by Fusion will be used for the planned development of the property into student accommodation with at least 438 beds.

IWG advised: (1) the acquisition vehicle, Fusion Froomsgate Limited in relation to a committed development and investment loan facility of £22.35 million provided by Cheyne Capital; (2) a separate Fusion entity in relation to the provision of mezzanine funding of approximately £4.5million to the acquisition vehicle; and (3) all property related and financial aspects in relation to the acquisition.

A team from IWG, led by Paul Sheeter, advised on the transaction.  Paul Sheeter advised Fusion in relation to the loan facility from Cheyne Capital with assistance of David Grabiner, and also on the property aspects with assistance of Pauline Glen.  Tanveer Tarafdar and Colin Winter of IWG advised Fusion in relation to the mezzanine funding arrangements.

Eversheds advised Cheyne Capital while Longmores advised Fusion Froomsgate Limited on the acquisition of the shares in the holding SPV.

Nigel Henry, a director of Fusion Residential Limited, is a long standing and core client of IWG.  He has been involved for many years in residential property development and established Fusion Residential with Warren Rosenberg in 2006 to focus on high end property development.  Fusion Students is a part of the Fusion group of companies, with its focus on the development of high quality, design led, student accommodation throughout the UK.  This transaction represents Fusion Students’ second scheme in Bristol; it also owns a student block in Hatfield and has exchanged contracts on sites in Nottingham and Newcastle.

For further details please contact Paul Sheeter or Colin Winter.