Arc & Co. structures debt and equity facility for £36m PBSA scheme

Specialist capital advisory firm Arc & Co. has closed a 70% LTV debt package in partnership with Ingenious Capital Management, whilst also sourcing a JV equity investor to support the development of a purpose-built student accommodation project in Tower Hamlets, London.

Southern Grove is developing the 111-bed, £36m GDV scheme in a joint venture with Falco Group.

Andrey Redman, Director at Arc & Co., structured the debt and equity with the Ingenious and Falco teams, respectively, over a period of eight weeks.

Andrey commented:

“It is a pleasure to support ambitious developers who are acquiring and building to provide much-needed homes in the popular PBSA, BTR and co-living sectors.

“Arc & Co. has the necessary expertise and deep relationships to source funding partners that have the right appetite and experience to back these ambitious strategies.

“Our advisory approach ensures that the structuring results in the best possible outcome for the borrower—now and as part of their future business plans.

“We are excited to support all parties as they bring their strategies to fruition.”

The Tower Hamlets scheme will have a gross internal area of 43,249 sq ft, 5,382 sq ft of which will be commercial space. 

Construction is set to begin in Q4 this year.

Southern Grove has ambitions to deliver 50,000 across its living sector brands, with 5,000 planned for 2024 alone.

Arc & Co. and Brickflow agree key partnership

Brickflow, the UK’s digital marketplace for specialist property finance, is pleased to announce its collaboration with Arc & Co., one of the sector’s leading advisory firms. The agreement highlights one of the major benefits of Brickflow as a supplementary finance tool to Broker practices at all levels. Offering top-tier technology to drive strategic lead generation, faster deal management and an elevated customer experience the software will enhance Arc & Co.’s ability to deliver its renowned market leading service at an even greater scale.

Brickflow’s platform will support Arc & Co. in building effective expansion strategies to elevate its brand further; the brokerage will leverage market specific technologies to plug directly into potential customers through its own channels and those of its extensive partner networks. With the help of Brickflow, Arc & Co. will be able to reduce dependency on continuous outbound activity and instead see pipeline growth through the targeted application of Brickflow’s software.

Recognised for their detailed and complex knowledge of market dynamics, Arc & Co. brokers will also be able to expedite the sourcing and application process by combining their deep understanding of the lending landscape with Brickflow’s instant market search functionality. Bringing together 100+ lenders, offering 1,350 products through the collection of 157,000 datapoints, Brickflow’s technology will help validate decision making and provide an immediate data presentation to support the customer’s decision making.

Furthermore, as Brickflow continues to provide solutions across the full capital stack, Arc & Co. will supplement existing relationships with those facilitated by Brickflow. Plugging directly into Brickflow’s exclusive partnership with Deallocker, a digital mezzanine and equity provider, Arc & Co. will be able to seamlessly unlock additional funds for its customers on a per deal basis ensuring that deployment of capital on each transaction is as efficient as possible for the borrower. As a key Brickflow customer, Arc & Co. will also benefit from further tactical relationships to support business growth..

“This partnership aligns perfectly with our commitment to delivering best-in-class financial solutions,” commented Andrew Robinson, Managing Director at Arc & Co. “Brickflow’s technology will enhance our productivity, ensuring clients secure the most competitive financing while reinforcing transparency and compliance across the borrowing process. We have a market leading team in place and are looking forward to seeing how technology can help accelerate our growth trajectory even further”.

Sabinder Robinson-Sandhu Head of Growth at Bricflow said “we’re delighted to have agreed a partnership with Arc & Co. This is a perfect example of a well established brand that is open to harnessing the power of technology to make a great business even better. Arc & Co. have a huge amount of experience and knowledge behind them but recognise they can move faster and with more certainty by using specialist tools in the market. Their support means a huge amount to us and we look forward to making a positive impact on the organisation as we strengthen our partnership in the months ahead.”

As part of the agreement, Arc & Co. have committed to placing set business volumes through the Brickflow platform indicating their support for the system. This is part of a wider tactical move to ensure that lenders supportive of Brickflow benefit from high quality deal flow from across the market.

By integrating Brickflow’s digital capabilities, Arc & Co. continues to set the standard in structured finance advisory, providing clients with a seamless, data-driven approach to securing funding.

Arc & Co. secures £27.5m from Coutts for Ability Group

Specialist capital advisory firm Arc & Co. has recently closed a £27.5m facility to refinance the Bristol Airport Hampton by Hilton Hotel.

The owner, Ability Group, had recently completed a 50-bedroom extension of the property due to high demand and continuous growth.

The 251-bed hotel has been trading strongly following the extension due to its prime location. Being only a 1-minute walk from the Airport terminal makes it perfectly positioned to support the airport’s £300m infrastructure upgrade which commenced last year.

Following instruction from the Ability Group, Arc & Co. undertook a full and thorough tender process to source the best available funding for the client. After multiple offers, Coutts emerged as the partner of choice.

The existing development finance was refinanced onto a five-year loan of £27.5m, significantly reducing the overall cost of debt for the borrower.

Arc & Co. Managing Director Edward Horn-Smith commented:

“It is heartening to see trading levels up and returning appetite from lenders willing to support the hotel sector.

“This is a space we are very comfortable in. I’ve remained heavily involved in asset management programmes as well as funding structures for a variety of hotel and other income-producing assets, ensuring that borrowers are guided through the process in what has been a tumultuous period for businesses.

“It has been a pleasure to work closely with a client whose asset has experienced such success resulting in a positive impact on their cost of debt.”

Anthony Nutkins, Director at Coutts, comments:

“We’re delighted to have supported our client in refinancing their Bristol Airport Hotel, enabling them to be a strong part of the overall airport infrastructure upgrade.

“This deal underscores our commitment to providing tailored financial solutions for high-net-worth clients, ensuring businesses have the flexibility they need to succeed. We look forward to helping our client continue building on this success.”

Arc & Co. secured funding for three unique businesses

At Arc & Co., we understand that finance isn’t one-size-fits-all. While many brokers focus solely on straightforward property transactions, our team is regularly trusted to structure solutions for more complex assets, businesses, and circumstances.

Here are three recent deals completed by Laura Jane McCauley that highlight our expertise in navigating unique challenges and ability to think beyond conventional financing:

1. Acquisition bridge for a hostel in the Peak District. Hostels are non-traditional assets which, like hotels, experience seasonal revenue fluctuations, and the shared accommodation model with a reliance on group bookings make it harder for lenders to assess stable cash flow and long-term viability. However, our client was an experienced finance professional himself with an existing, income-generating first site and with this being his second. Laura arranged an acquisition bridging loan at 70% LTV and 1.09% per month to quickly acquire the site – the client is then immediately refinancing on to a refurb facility to renovate the site into a higher quality asset in time for summer bookings.

2. Eco-glamping and caravan site in Hampshire. With less than 25% of the site occupied by permanent buildings, this project was challenging to finance due to many lenders’ reticence to use land as security. On top of this, the site was already using bridge financing to enhance planning permission, but required a little more time to add further changes. Laura negotiated a competitive re-bridge offer at 50% LTV and 11% per annum, as well as a re-assessment of a valuation after the valuer had missed some critical features of the site. The client was able to receive sufficient funding to refinance the original lender as well as additional funds to continue improving the site.

3. Working capital for a law firm acting on behalf of victims of domestic abuse. The firm required fast and flexible funding to manage cash flow while handling urgent and sensitive cases. Laura secured a tailored facility with an innovative working capital lender that ensured the law firm could continue providing critical legal services without disruption. The facility, currently at £300,000 on a 60-day repayment term with a 2.09% unsecured interest rate per month, can be increased or decreased according to their needs, and was available to them less than two weeks after the initial introduction.

These cases demonstrate our ability to deliver financing solutions for unconventional assets, alternative business models, and unique funding requirements. Whether it’s acquisition bridging, refinancing, or specialist business funding, Arc & Co is here to provide the expertise and flexibility our clients need.

Edward Raynor joins Arc & Co. as Asset Finance Advisor

Specialist debt and equity advisory Arc & Co. has appointed Edward Raynor as Asset Finance Advisor.

Edward has a decade of experience in real estate finance and debt advisory, spanning private debt funds and investment banks.

His career includes roles at Morgan Stanley, private debt funds Birchwood Real Estate and Starz Real Estate, and Eastdil Secured—a US investment bank with a strong European presence.

Edward is well versed in deal structuring and modelling, as well as asset management across multiple classes, including logistics, hotels, offices, self-storage, student accommodation, residential, and life sciences.

Joining the growing Arc & Co. team, which now stands at 22, Edward is looking forward to bringing a solution-driven, data-led approach to the business.

He comments:

“I’ll be leveraging my lending and advisory background to secure optimal financing for Arc & Co. clients.

“Through effective strategy, combined with market intelligence and a commitment to smooth execution, I’m confident that I can add value to what is already a formidable team of advisors.”

Arc & Co. CEO Andrew Robinson comments:

“It’s exciting to announce our first hire for 2025. Edward has the type of proactive mindset we look for, as well as a background that enhances to Arc & Co.’s capabilities and capacity.

“The coming months are set to be very busy, with larger, more complex transactions taking centre stage.

“Edward’s experience in term and development lending at a variety of institutions will be of huge benefit to the business.”

Arc & Co. and Atlas Capital Partners close £59m hotel loan

Arc & Co. has completed a £59m loan with Atlas Capital Partners 

The loan was provided to refinance existing bank debt secured against a UK-wide hotel portfolio.

The flexible commercial facility supports the borrower with funds to enable value-add initiatives over the next 24 months, including various brand enhancements.

The loan is consistent with Arc & Co.'s long track record in sourcing tailor-made solutions via their extensive lender network.

Edward Horn-Smith, Managing Director of Arc & Co., commented:

“The borrower required flexibility to enable them to execute their business plan over the course of the next two years, and that’s exactly what this loan provides.

“Following a short but thorough tender process, we quickly established that Atlas Capital Partners were the right funding partner on this transaction.”

Christoph Nickel, Equity Partner at Atlas Capital Partners, commented:

“This transaction is a good example of Atlas’ ability to provide holistic whole loan solutions.

“Our profound sector expertise in the hotel space and execution skills have allowed us to provide transaction certainty to the sponsor and attractive risk-adjusted returns for our investors.”

Arc & Co. arranges £1.34m expat BTL refinance for London property

Gareth Briggs, Head of UK Residential Mortgages at specialist capital advisory firm Arc & Co., has secured a £1.34m buy-to-let refinance facility for a London property owner who relocated to Dubai.

The process was particularly challenging due to the business being viewed as a Dubai start-up from a lending perspective.

The four-month completion timeline reflected various hurdles, including a significant down-valuation from £2.5m to £2m. Adding to the complexity, a portion of the land was scheduled for sale later in the year, requiring careful structuring of the titles and security. The charge was specifically arranged to cover only the house and existing garden, ensuring a smooth future sale process.

A key challenge was meeting income coverage requirements, as the London property's rental income alone was insufficient. The solution, proposed and navigated by Arc & Co., involved incorporating the borrower's Dubai business income, despite it being in its early stages and currently supported by external investors.

The loan represents a 67% LTV against the property's final valuation of £2m, structured as a 2-year fixed rate at 6.64% over a 20-year term.

Gareth commented:

"This deal required a specialist approach due to its unique circumstances. The chosen lender was the only one comfortable utilising the Dubai business income, despite it being a new venture.

“By carefully structuring the security and navigating the ICR requirements, we've delivered a solution that supports both the client's current needs and future plans for the property."

Arc & Co. completes £26m bridging loan

Specialist debt and equity advisory Arc & Co. has closed a £25.67m bridging loan on a Knightsbridge property.

Secured against a vacant nine-unit residential block, the facility will refinance the existing lender.

The borrower intends to commence trading as a high-end serviced apartment complex within the next year.

The client, introduced to Philip Kay, Director at Arc & Co., by a wealth manager, is an owner-operator of high-end serviced residences in and around Knightsbridge and South Kensington in London.

The loan is for a term of 12 months and at 70% LTV.

Philip commented:

“When dealing with high-value assets, especially in London, expectations around the valuation need to be managed extra carefully.  

“Our job is to source and work closely with a lender who understands the deal and has a genuine willingness to work with the borrower in achieving the required funding.

“Our lender partner displayed a pragmatic degree of flexibility in how they approached the proposition, and we collaborated well to arrive at a successful outcome for all parties.”

Arc & Co. completes £3.4m investment loan for a student asset

Specialist capital advisory Arc & Co. has closed a £3.375m commercial investment loan for the refinancing of a student asset in the Midlands.

The borrower—an experienced investor and developer—approached Arc & Co. to find a more appropriate funding solution to what had already been explored in the market.

Vishal Dixit, Senior Broker at Arc & Co., presented funding options that fit the case and its complexities, which included a complication with the lease structure that required additional legal counsel for the lender to get comfortable.

Vishal commented:

“There is typically a solution for every deal, and the application and case management can make all the difference. We have to advocate for our clients and ensure that lenders fully grasp the proposition.

“Being specialists, we know which lenders will be particularly commercial in their approach to these less straightforward instances. 

“Commercial borrowers, especially, need to work with a broker who understands the market and has the necessary experience to source the right lender.”

The facility is for five years at 73% loan to vacant possession value.

Arc & Co. actively searches for the most advantageous debt and equity solutions by leveraging its extensive network of funders. Our ability to engage with finance providers that are prompt and flexible, as well as competitive in relation to current market demands, continues to provide substantial benefits to our clients.

Arc & Co. secures £10m development loan for 46 houses

Cameron Hayes, Director at specialist capital advisory firm Arc & Co., has secured a loan of £10m for a development in the Midlands.

The peak debt facility of £10m will fund the development of a residential scheme of 46 houses in Derbyshire.

The borrower has PE backing from Angelo Gordon and is emerging as one of the leading national housebuilders.

The primary priorities were pricing and speed, and Cameron conducted a thorough tender to determine the best funding partner for the deal. 

In addition to meeting the client’s expectations around time and costs, the chosen lender’s capacity to look at future opportunities was an important factor, establishing a framework to enable the client to roll multiple peak debt developments into this structure.

The site was purchased from one of the landed estates and required a license agreement with the estate which led the bank and solicitors to carry out an additional level of due diligence. 

The deal took three months to complete and was delivered at 65% LTGDV, with a gross facility of £10m and for a term of 24 months. The deal is inclusive of a peak debt/revolving credit facility of £7m, enabling the client to manage interest costs.

Cameron commented: 

“As this was the client’s first banking relationship, it was vital that we undergo a full market search, comparing terms and returns to the client.

“The lender in question is reliable and meets not only the current requirements of this emerging national housebuilder, but can support future opportunities, too. 

“It’s our job to ensure that communication and processes run smoothly, paving the way for a successful borrower-lender relationship going forward–and we have achieved that. 

“We look forward to working closely with the housebuilder on their journey to deliver 1000+ units over the next 18 months.”

Arc & Co. secures €11.1m in complex French bridging deal

Arc & Co. has completed a €11.1m bridging loan on two chalets and land with planning in a mountain resort in France.

The client was introduced to Arc & Co. CEO Andrew Robinson via a wealth manager, a strong origination channel for the firm.

Andrew originally worked with the borrower a year ago on a bridging loan to secure the land surrounding the chalets. Since then, planning has been achieved, and the land has now been valued at £28m—ready to be sold for development into a hotel.

Andrew sought a lender to refinance the existing bridge, therefore allowing the borrower time to sell.

Critically, the finance provider was required to consider the independent value of both of the chalets as well as the land with planning.

Andrew commented:

“This was one of the more difficult points to cover as not many lenders in the location would look at both values. We had a 75% day-one on the current residential usage but combined with the residual land value of the hotel, the LTV came down to 40%.”

Specialist bridging lender Brydg was selected as they have the requisite local market knowledge and capabilities to understand the structure—which was imperative to get the deal closed. The client had changed the structure from a Luxembourg holding company to a French SCI which added complexity during underwriting.

For added comfort, Andrew negotiated for Brydg to have a ‘golden’ share in the French SCI to enhance their security on the loan structure.

The €11.1m loan was completed in six weeks from signing and was priced at 1% pcm.

Andrew stated:

“Due to the valuation, structure, and location, there were not many lenders that would consider this deal—it was very specialised.

“The French legal system is complicated, and it was a challenge working with a raft of lawyers and notaries. Communication was key, so all-parties calls had to be held at least weekly so we could manage the process to completion.

“Our experience and in-depth lender relationships means that we can step in and assist with international cases, providing the necessary case management to keep all aspects moving.”

Arc & Co. partners with specialist international agents MyElysium

We are pleased to announce that Arc & Co. has joined forces with MyElysium—providers of comprehensive services to clients wishing to buy property and relocate to Cyprus, buy a holiday home, or move a business from the UK to Cyprus. 

Arc & Co.’s extensive experience working with non-dom clients and those wishing to invest internationally makes us the perfect specialist broker partner for those considering property investment in Cyprus.

We are experts in navigating the intricacies of lending across multiple jurisdictions, ensuring you can secure the best solutions whether your assets are based in the UK or abroad. We are familiar with the various structures often required, from holding companies to trusts, and can guide you through the most suitable lending options tailored to your needs.

Who are MyElysium?

MyElysium are estate agents in that they sell property in Cyprus, but they are so much more than that. From initial enquiry they will take a personal interest in your hopes and aspirations and will guide and support you to acquire a holiday home, main residence, or even to relocate a business and its employees to the beautiful Mediterranean island of Cyprus.

The team – Ian Davies, Stephen Parsons and Grahame Clist – have been connected professionally for around 40 years and have many decades’ experience in International and UK property sales. They set up MyElysium in 2023 to add value to the significant number of UK investors, retirees, second home and business owners currently moving to the country in light of the taxation and lifestyle benefits. 

MyElysium offers a bespoke personal service not only assisting with property searches but also introductions to hand-picked professionals such as trusted solicitors, surveyors and accountants, as well as support with all matters relating to immigration and relocation.  

Why is Cyprus such a popular destination for UK buyers?

1. Cyprus and UK have strong ties, making adapting to life there very easy 

2. GDP is expected to reach 3.5% for 2024, house prices increase at around 14%, and inflation is at approximately 2%

3. 60-day Rule – you can become a Cyprus Tax Resident by spending just 60 days a year in Cyprus

4. Residency by investment – purchasing property can qualify you for permanent residency, offering access to healthcare and education

5. No Capital Gains Tax – no capital gains tax, except on the sale of immovable property located in Cyprus

6. 5% flat tax rate on pensions – retirees benefit from a flat tax rate of 5% on pension income

7. Extensive double taxation treaties – Cyprus has established double taxation treaties with over 60 countries

8. Favourable personal tax regime – enjoy a tax-free personal income up to €19,500, with no wealth, inheritance, or gift taxes

9. Tax-Free dividends and interest – dividend, interest, and rental income are exempt from SDC tax

10. Legal system is based on UK principles, ensuring a smooth transition from a conveyancing and/or business perspective

11. Business-friendly environment – low operating costs, a skilled workforce, and modern infrastructure make Cyprus attractive for business

12. Excellent healthcare providers – numerous specialist new hospitals, clinics and surgeries await, often with same/next day services

Through the Arc & Co. and MyElysium partnership, you can tap into a combined wealth of guidance and advice relating to property investment abroad, including:

• Local laws and regulations – property laws, taxation, residency requirements and mortgage regulations

• Foreign exchange risk associated with fluctuations if the mortgage or payments are in a foreign currency

• Legal and tax implications - local property taxes, stamp duty, capital gains tax, and inheritance tax

• Local market dynamics - property market conditions, including typical property values, growth trends, and risks in the local real estate market

• Market-specific fees - notary fees, legal fees, and surveyor costs

• Financing terms and eligibility criteria - compare the terms and interest rates offered by international lenders, considering fixed vs. variable rates and early repayment conditions, and differences in lending practices for non-residents

• LTVs and deposit requirements - deposit requirements can be significantly higher for foreign buyers.

• International credit considerations - using a credit score or financial history from one country in another; some international lenders who recognize global credit histories

• Exit strategies - implications of selling the property, including costs, taxes, and repaying the mortgage early, as well as contingency plans

• Political and economic stability - the stability of the country and its potential impact on property prices, exchange rates, and mortgage terms

Whether you’re considering a move, seeking rental income, or looking to invest, we’re here to help you maximise your opportunities in Cyprus and here in the UK.

Angeline McGeary

Specialist Mortgage Advisor

angeline@arcandco.com

07702 745 522

Stephen Parsons

International Sales Director

stephen@myelysium.co.uk

07740 735 144

Arc & Co. wins Pan Finance Awards UK Capital Advisory Firm of the Year

We are delighted to announce that Arc & Co. has won the title of UK Capital Advisory of the Year at the most recent Pan Finance Awards. 

The awards have been “established to be a true measure of excellence . . . [that] look beyond the realm of the balance sheet alone, measuring success through innovation, stewardship of the environment and positive impact on society.”

CEO Andrew Robinson commented “We are honoured to win this award. Our goal in 2024 was to lean into our capabilities as a true capital advisory, providing an end-to-end service to our clients, and leveraging the incredible experience within our team. 

“In today’s climate, genuine advice is paramount in order to arrive at the right funding solution, one that takes into account not only the present requirement but its impact on the client and business’s future objectives. We believe Arc & Co. embodies that approach.

“Congratulations to the Arc & Co. team and thank you to Pan Finance for appreciating our work.”

We wish to extend our sincere appreciation to all the lenders and funds with whom we have worked closely during this period. 

Pan Finance is a trusted source of global financial intelligence with a readership base of +200,000 across 150 countries. With offices in London, Lagos, Barcelona, Miami & Sharjah and a distribution network in Europe, Middle East, Africa, LATAM, North America and Asia, our ecosystem includes a quarterly magazine (online and print), special reports, a financial news website, and other media channels. As an organisation, we are dedicated to providing concise, intelligible, and up-to-date news for our worldwide readership.

Looking ahead, Arc & Co. is committed to preserving its reputation as a leader in broker quality, pursuing excellence in a dynamic financial landscape, and enhancing our partnerships with all stakeholders. 

Arc & Co. refinances Acton project with £3.85m senior and mezzanine funding package

Specialist debt and equity advisory firm Arc & Co. has completed a complex development facility for a pre-existing site in Acton.

Sam Beaumont, Advisor at Arc & Co., has secured a loan of £3.85 million for the development of 8 flats—split into £2.99 million of senior debt and a £857,000 mezzanine loan.

Across the funding package, Sam achieved 83% LTGDV, covering off most of the costs for the borrower, an experienced London developer and repeat client of Arc & Co.

As part of the structuring, the mezzanine funder also took equitable charges in order to satisfy the LTV required. Sam sought the best lender pairing and most competitive pricing possible for this high leverage case.

Over the course of seven months, Sam took on a central role in the transaction and kept the deal on track, specifically in regard to the communication between solicitors.

Despite the challenges, the development facility of £2.9m was delivered at 65% LTGDV for 18 months, with the top-up mezzanine loan of £857,000 at 83% LTGDV for 12 months.

Sam commented:

“Finding a suitable mezzanine or equity partner was a very long process that included many calls and introductions between parties. Although Arc & Co. has a sizeable network of providers to tap into, every case and borrower is unique and we always conduct a full and thorough tender to find the most appropriate funder for the specific circumstances at hand.

“We’re pleased to have paired two lenders who have a good relationship—often an inherent challenge when working with more than one provider in the capital stack—and who could come together to support our client with the necessary funding.

“Overall, the solution will see the client able to complete the project and maintain their equity position.”

Arc & Co. actively searches for the most competitive development, mezzanine, and equity solutions by leveraging its extensive network of lenders. Our ability to engage with finance providers that are prompt and flexible continues to provide substantial benefits to our clients.

Arc & Co. secures bridging loan in just 15 days for 75-year-old borrower

Dieter Kerschbaumer, Asset Finance Advisor at Arc & Co., has completed a bridging loan for the purchase of an auction property in Devon in just 15 working days.

The borrower, who is 75 years old, bought the asset to refurbish and sell for a profit.

Dieter worked closely with the client to find a specialist lender who not would not only act fast but was comfortable with the age of the borrower—something which not all funding providers can get behind.

In addition, the chosen lender—a private bridging funder which is known for being very hands-on—included the legal costs associated with the facility in the loan, saving the client upfront fees.

The 65% LTV loan is for 18 months and priced competitively at 0.79% pcm.

Arc & Co. achieves record turnaround time in complex $5.5m equity release case

Specialist capital advisory firm Arc & Co. has completed a $5,500,000 equity release secured against a 50m yacht.

The loan completed in record time – an incredible two weeks to the day after the client and lender discussed the offered terms and agreed to proceed with the facility.

In addition to the tight timeframe required by the client, the deal structure and borrower’s circumstances presented several challenges. Arc & Co. leveraged its significant experience in marine financing to negotiate not only the best criteria with the lender, but terms that suited all parties and smoothed the way to completion.

The lender, a family office normally focusing on FinTech investments, took the urgent deadline and complexities in their stride with remarkable speed of execution and diligence. 

Their ability to value the yacht in-house was a major contributing factor to completing on time.

The deal was introduced to Arc & Co. by a leading wealth manager and is the second in as many months which the two firms have collaborated on.

Andrew Robinson, Arc & Co. CEO commented:

“This case saw us structure the deal, issue legal documentation, and handle the yacht registers simultaneously to achieve the tight deadline.

“HNW and UHNW clients’ circumstances are rarely straightforward, but 17 years spent financing luxury assets and real estate means that we understand the lending parameters and the hallmarks of a funding provider that can be counted on–even in the most challenging, time sensitive cases.

“Arc & Co. has completed several yacht loans this year, underscoring the increasing requirement for clients to redeploy capital across a variety of investments for best returns. 

“With a strong track record in securing these facilities, we welcome the opportunity to work with introducers and direct clients who need reliable, transparent advice.”

Arc & Co. and Quantum team up on £4.7m loan for housing development in Cambridge

Specialist capital advisory firm Arc & Co. has recently completed a new development loan with Quantum Development Finance for a scheme in Cambridgeshire. 

Tom Berry, Director at Arc & Co., has secured a loan of £4.76 million for the development of eight houses—including several barn conversions, one of which is grade-listed property.

The funds from Quantum are assisting with the land purchase and covering all costs associated with the build.

The site was originally owned by a local farmer who was looking to sell the site with planning to the client, a Cambridge-based developer. All parties had to navigate a complex overage agreement, multiple plot titles, and a lease agreement.

Despite the complexities, the case was delivered at 65% LTGDV by Quantum and Arc & Co. The developer has now begun construction and will be looking to achieve practical completion by 2026.

Tom commented: 

“The Quantum team understood the underlying legal complexities and took a commercial approach to progressing the finance. Quantum are a new introduction to our client, and we look forward to seeing the relationship flourish.”

Mike Jessop, Lending Director at Quantum Development Finance, said:

“We were delighted to provide this funding package for an experienced SME developer with a strong regional presence. 

“The due diligence process was not without its complexities; however, it serves as a great example of how a lender, client and introducer can all work together to find a solution that works for everyone. 

“It was a pleasure to work with Tom and the Arc & Co. team on this transaction – they're a commercial, relationship-led organisation just like QDF. We look forward to supporting the client on this development and upcoming projects.”

Arc & Co. secures £4.2m for Southeast estate development

Cameron Hayes, Director at specialist capital advisory firm Arc & Co., arranged the £4.2m debt facility, which marks the second deal between the lender and client. Cameron first assisted the borrower with a bridge earlier this year.

The loan is for a residential scheme in the Southeast that was originally acquired with a land bridge and has now been refinanced onto the development loan to carry out the works needed to transform the estate into a collection of apartments.

As well as driving the legal process to ensure a timely completion, Cameron also negotiated with the lender to allow the borrower to use their existing QS. The loan closed in under two months.

This case is a good example of Cameron and the borrower—an experienced developer in the region—having a strong relationship that is resulting in repeat transactions, not only because of the effective lender pairing but because of Cameron’s understanding of the project’s lifecycle.

The 65% LTGDV is at a sub-5% margin for 18 months.

Cameron commented:

“Typically, it’s more difficult to get funding for apartment schemes over houses—especially prime regional units—but in this case the number of units was to our benefit, alongside the fact we were working with a developer who had great experience both in the local and residential market.

“Having the knowledge and skills to seamlessly take a client from one facility to another, as part of their wider business plan, saves the borrower time and money in the long run–and makes for an overall more productive journey.”

Arc & Co. completes £4.7m development loan for award-nominated project

Sam Beaumont, Advisor at specialist capital advisory firm Arc & Co., has recently closed a £4.7m development loan for a ground-up development in Macclesfield.

The award-nominated scheme is a 2.5-acre development “designed with sustainability at its heart” and comprises 15 new homes that will sit alongside a unique, flexible workspace, with both private offices and co-working space. 

A farm shop providing stalls for local, independent vendors will also form part of the project—a welcome addition to Henbury, according to residents at the public consultation.

The 70% LTGDV facility is for a term of 20 months, priced at 5.65% plus base rate. 

The developer—a family business which has an impressive track record in the Northwest and which carries out all construction in-house—had not worked with a broker before engaging with Arc & Co., having previously dealt directly with lenders and therefore not experienced the value afforded by using an advisor.

Sam proposed and secured a stretched senior option which suited the client better than a senior facility combined with a mezzanine loan. This structure meant fewer fees and one less party involved in the transaction. 

The chosen lender not only completed faster than the incumbent one could refinance the loan but was flexible in adding the borrower’s preferred valuer and PMS to its panel—a condition Sam negotiated on behalf of the client. 

Sam commented:

“It was fantastic to win this developer’s business, despite their existing relationships with funding providers. Our understanding and expertise really came to the fore and added a huge amount of value to the ultimate outcome.

“The deal structure underwent several changes throughout the process, but the lender took a pragmatic approach and worked well with all parties to achieve this outcome.

“It’s exciting to negotiate a deal for an award nominated development, and I look forward to seeing the final product, as well as hopefully working with both the client and borrower again in the future.”

Arc & Co. completes €3.4m acquisition loan for 40m superyacht

Arc & Co. has secured a €3,375,000 loan for a client purchasing a superyacht based in France—despite several initial hurdles.

The yacht was built by one of the leading superyacht builders in the world, Alloy Yachts, and has been kept in pristine condition with an impeccable maintenance record since its delivery nearly 20 years ago.

The age of the vessel proved tricky for most lenders, as well as the fact that the yacht’s shipyard has recently ceased operating. However, Alloy Yachts still provide maintenance and inspections for their historical yachts, giving comfort to the lender regarding ongoing care.

Additionally, and unusually for a yacht of this age, the valuation came in above the purchase price due to its near perfect condition, which enabled the lender to offer a higher day one facility than originally agreed.

The client’s complex personal and corporate structures presented challenges, too, and discounted the more vanilla finance options. However, the Arc & Co. team expertly and diligently navigated the borrower’s unique profile with the lender to ensure that all parties were aligned, which was possible due to our extensive experience and understanding in working with UHNW clients and their wealth preservation requirements.

Having overcome these hurdles, the deal concluded in record time: it took just six weeks from receipt of initial terms to final drawdown—an impressive feat given the holiday schedules of the various parties involved.

The 48% LTV facility was negotiated at a rate of 4.4% over Euribor, for a five-year term with a 50% balloon payment.

Andrew Robinson, Arc & Co. CEO commented:

“This deal was challenging both in terms of communication and the unique aspects of the asset itself, but through expert communication, all parties have come to a comfortable and successful solution.

“The client was so happy and grateful for the quality of service received by Arc & Co. that they have already re-engaged us to help them finance a large social housing scheme in the UK.”

Arc & Co. has a successful track record in securing finance for marine and aviation assets, leveraging leading in-house expertise with a unrivalled network of providers that cover all client circumstances.