Specialist debt advisor Arc & Co. has arranged a new £16 million facility from Ingenious Real Estate to finance the development of a light industrial scheme in Battersea, south-west London.
The finance has been arranged on behalf of a private developer client at a loan-to-gross-development-value (LTGDV) of 65%.
The developer is constructing 30,000 sq ft of high quality general industrial and last-mile distribution space, following planning permission being secured in May. Work on the scheme is expected to complete in Autumn 2024, at which point the developer will look to lease and hold through refinancing onto a longer-term facility.
The new loan is the second arranged between the two parties. Arc & Co. arranged bridging finance from Ingenious Real Estate to acquire the site in summer 2022, enabling the borrower to benefit from short-term income during the planning process. The bridge was arranged at 70% loan-to-value, with the roll onto development finance at 65% LTGDV releasing equity for further acquisitions.
Cameron Hayes, asset finance advisor at Arc & Co., said: “Ingenious Real Estate is one of the leading specialist funds for speculative commercial developments and was extremely flexible to work with throughout the arrangement of these loans. We look forward to seeing the project built out and working with our client on the refinancing once work has been completed.”
Harry Cloke, Investment Director at Ingenious Real Estate, added: “This is a highly experienced developer and another top introduction from Arc & Co. We are delighted to be continuing the project into the development phase and adding to our ever-growing industrial strategy alongside our more established residential, mixed-use and bridging offering.”
The Arc & Co. Group is a specialist asset finance advisory company based in Fitzrovia, London. 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.