Arc & Co. has secured a £5.8m investment facility to support a repeat borrower in refinancing their existing debt—the most recent in a series of office transactions completed by the specialist capital advisory firm
The asset is a serviced office located in Devon, set in 70 acres of land and comprising 14 buildings and 150,000 sqft of income producing space.
The client needed to refinance their existing facility and move from a variable to a fixed rate to improve cashflow.
Cameron Hayes, director at Arc & Co., partnered with a private bank to obtain 55% LTV and fixed pricing of 6.65% for the full five-year term.
Despite the lack of long-term leases in place, the volume of and overall diversity of tenants meant that Arc & Co. was able to provide sufficient comfort to the lender. Relying on private banks who display this sort of commercial approach is becoming increasingly necessary to support this sector.
Cameron commented:
“Funding for regional serviced offices is not typically forthcoming, so it was a pleasure to work closely with a funder who not only displays an appetite for this asset class, but pricing that is very attractive.
“Arc & Co. is working hard in this part of the market, backed by lenders who understand and can get behind these deals. We see these sorts of transactions growing over the coming months as investors look to refinance, reposition, and undertake brown-to-green strategies.”