Arc & Co. have successfully structured and closed a £2.3 million development facility with a private lender against 12 separate properties in Liverpool.
Each property was an individual terraced house, which will now be converted to high specification student HMOs and ultimately let to the growing student market in one of the UK’s fastest growing cities.
Arc & Co. Structured Finance team comments: “Working on this opportunity was hugely exciting. Having previously worked with the same clients on individual units, I knew exactly how they worked and what they would want to achieve with this project. We managed to save the client approximately 5% interest per annum, by grouping several properties together rather than treating them as individual projects. This obviously generated a saving on professional fees as well as ongoing monitoring costs across the course of the transaction.”
They go on to add: “The loan was highly competitive for this type of project: 65% loan-to-gross development value, including 100% of construction costs, at 7% per annum with a 2% arrangement fee and no exit fee. Obviously this type of loan isn’t available for everyone, but for experienced clients building quality properties, these rates are available.”
Jordan Silverstone, Founder of Brickworks Properties, commented: “We’re glad to have found a sophisticated broker and lending partners who understand our model, can support our growth and will allow us to scale.”