Arc & Co are pleased to announce the completion of an £86m loan facility on a speculative residential development in the Midlands. The funds will be used to acquire the site and repurpose the land from its current tenure.
Our client, who has multiple sites nationwide, was set a strict deadline to complete the purchase and required a high loan to value. They required a lender who would be able to give them the flexibility required to enhance the value through a number of different strategies.
The Loan amount of £86m was provided in an initial drawdown of £76m, equating to an 80% Loan to Value, on a 3 year term. The balance will be drawn upon attaining certain planning permissions.
A US based hedge fund provided the loan facility, with the entire deal taking just 6 weeks from application to drawdown. This was the first deal Arc & Co have transacted with this global investment firm.
Sean Adams said 'This was a complicated funding proposition with many moving parts, but to get from application to completion in just over 6 weeks was quite a feat. This was thanks to a very engaging client and an extremely proactive funder. We look forward to completing further funding transactions for this client'