Julian King, Director within the structured finance team at Arc & Co. has secured a £3.5m residential developer exit bridge with Century Capital for his client, a Surrey based developer to refinance an existing development facility.
The new facility provided a loan of 70% LTV for 9 months, allowing for an extended period in which to sell the asset, protecting its underlying value. Due to pressures from lack of labour, rising costs and supply chain issues lengthening the build program, the development loan had come to term without a suitable sales period.
The solution was to refinance, supporting the developer to obtain the true value of the specialised asset, a beautifully restored and modernised Surrey mansion sat in 6 acres of mature parkland surroundings.
Julian King added “It was a privilege to be involved in the development of such an asset and to work with my client who had a clear vision from inception 2 years ago. I’m looking forward to seeing who purchases the property and to seeing it sold successfully, providing an unrivalled home, beautifully reinstated to the highest of standards. This is a great example of how well an exit facility can work, allowing for time in which to realise the true value of assets and protect against the erosion of value. Something that I think we will see more developers turning to in the months ahead.”