Philip Kay, Senior Asset Finance Advisor at Arc & Co. has completed a £10.2m commercial investment facility for the refinance of two regional serviced office assets. The 5-year senior investment loan is being provided by Waypark Capital at a 71% LTV on a variable interest rate. The proceeds of the loan were used to refinance two acquisition bridge facilities which the client had drawn to acquire the properties earlier in 2022.
The loan was credit approved prior to the rapid interest rate increases in September and October. The loan was agreed at 71% LTV against investment value not vacant possession. Given that the lender funds on a variable basis, the recent market volatility would normally have required a reduction in LTV, however in this instance, Waypark Capital were able to structure the loan repayment profile to mitigate the possibility of higher funding costs in the market and maintain the high LTV for the benefit of the client. This was due to the excess cashflow from the lease which created stability against the volatility of increased interest rates.
Philip Kay said “I’m delighted to have closed this transaction in the current market and would like to thank Waypark Capital for their flexibility and speed in structuring this loan. They were able to look beyond the market turbulence of the last couple of months and are truly a ‘through the cycle’ lender. I look forward to working with them again.”
Nicolas Vocos, CEO of Waypark Capital said "The team worked with Arc & Co. and the client to structure the right funding solution to their requirements. We are pleased to have delivered this loan and provided the certainty of execution needed during these very uncertain times.”