Arc & Co. and specialist property lender Tuscan Capital have arranged to fund a £3.2m exit bridge for a developer in need of more time to sell.
Interest on the 75% LTV facility is part rolled-up, part serviced in order to maximise leverage for the borrower.
Cameron Hayes, director at Arc & Co. and lead advisor on the deal, achieved pricing of 1% pcm for the facility and completed the transaction within a very efficient timeframe to enable repayment of the incumbent lender.
The client is targeting a strategy of selling through some of the units before refinancing onto a BTL with a specialist lender.
Cameron commented:
“Bridging for developers has really come to the fore in the last 18 months, providing a good short-term refinancing option for schemes that require more time to sell. Tuscan are quick and communicative, and together we’ve structured a solution for a borrower who may otherwise have further eroded their equity due to escalating development finance costs.”