Real estate finance advisory firm Arc & Co. has arranged a £2.4 million bridging facility with Novellus to fund the construction of a scheme-enabling access road on a site in Devon, allocated for industrial use.
Arc & Co. secured the facility from Novellus, the specialist bridging lender, reflecting a loan-to-value of 50%, at pricing of 1% per month. The term length is 12 months.
The site, which has outline planning permission in place for the development of several light industrial warehouses, is currently without permanent road access. Under the terms of sales agreements for the individual plots, the road must be completed to base course level.
Dieter Kerschbaumer, asset finance advisor at Arc & Co., said: “The detail involved in this bridge facility made it anything but simple, but we were confident in recommending Novellus’ lending solution that will help unlock the development’s significant value.
“Novellus offered a bespoke solution to our client, underscoring the importance of leveraging a diverse pool of lenders and structuring the funding to meet our borrower’s needs.”
Adam Forman, Head of UK Bridging at Novellus said: “With Novellus being 100% privately funded, we were uniquely positioned to offer the borrower reliability and certainty of capital, in a precarious funding market. Novellus are delighted to have worked alongside Arc & Co. on this transaction, providing the borrower with funds to carry out the essential infrastructure works to the site.”
The Arc & Co. Group is a specialist real estate finance advisory company based in Fitzrovia, London and operating across the UK, Europe and Asia. Its three divisions – real estate, marine and aviation – allow it to provide specialist advice across a range of financing solutions, including senior debt, equity, leasing and mortgages.
Novellus is an independent, privately funded lender with offices in London and Dublin, offering bridging and term loans with no upper limit and secured across a wide range of property assets - including land (with or without planning), commercial, industrial and/or residential.