Philip Kay, Senior Asset Finance Advisor at Arc & Co. has completed £20.84m across two loans (Both debt & equity) for the acquisition of a residential block in Borehamwood. Post-acquisition, the developer client will apply for planning permission to add additional units to the existing scheme.
The senior investment loan of £12m is being provided by Aldermore at a 70% LTV on a 5-year fixed interest rate. The additional funds for £8.3m are structured as a second charge loan with a profit share element. The specialist development funder in question was comfortable to accommodate the planning risk in the scheme, given the strong location and the developer’s track record.
Philip Kay says “This is a well-located residential asset which our developer client has identified for its upsizing potential in the local market. The resulting scheme will complement the local area and we look forward to working on the development facility once planning for the additional units is granted. I’d like to thank both lenders for their support on this transaction.”
Ian Sutton from Aldermore says, “It is an exciting deal with Aldermore providing the senior debt enabling the acquisition of a quality residential asset, it was an excellent collaborative approach from all parties and great to be involved. We feel the asset has great potential to add value through development and look forward to supporting the development in the future. The deal showcases Aldermore’s ability to create long-term funding partnerships aligned to borrower strategy and brilliantly demonstrates our bespoke and flexible approach, combining both investment and development finance. Special thanks to Philip Kay of Arc & Co. for the introduction.”