Sam Beaumont, Advisor at specialist capital advisory firm Arc & Co., has recently closed a £4.7m development loan for a ground-up development in Macclesfield.
The award-nominated scheme is a 2.5-acre development “designed with sustainability at its heart” and comprises 15 new homes that will sit alongside a unique, flexible workspace, with both private offices and co-working space.
A farm shop providing stalls for local, independent vendors will also form part of the project—a welcome addition to Henbury, according to residents at the public consultation.
The 70% LTGDV facility is for a term of 20 months, priced at 5.65% plus base rate.
The developer—a family business which has an impressive track record in the Northwest and which carries out all construction in-house—had not worked with a broker before engaging with Arc & Co., having previously dealt directly with lenders and therefore not experienced the value afforded by using an advisor.
Sam proposed and secured a stretched senior option which suited the client better than a senior facility combined with a mezzanine loan. This structure meant fewer fees and one less party involved in the transaction.
The chosen lender not only completed faster than the incumbent one could refinance the loan but was flexible in adding the borrower’s preferred valuer and PMS to its panel—a condition Sam negotiated on behalf of the client.
Sam commented:
“It was fantastic to win this developer’s business, despite their existing relationships with funding providers. Our understanding and expertise really came to the fore and added a huge amount of value to the ultimate outcome.
“The deal structure underwent several changes throughout the process, but the lender took a pragmatic approach and worked well with all parties to achieve this outcome.
“It’s exciting to negotiate a deal for an award nominated development, and I look forward to seeing the final product, as well as hopefully working with both the client and borrower again in the future.”