Specialist capital advisory Arc & Co. has secured a £15.7m acquisition loan to fund the purchase of an office in Farringdon, London.
The 24-month facility is provided by Delancey Real Estate, who were flexible in their approach to this higher leverage requirement. Farringdon is a strong office location currently undergoing wider regeneration which supports underlying rental demand.
Philip Kay, director at Arc & Co., commented: “The client managed to secure the acquisition of the office building at a very favourable entry level, which enabled flexible structuring with Delancey.
“We are pleased to have concluded on yet another successful office transaction, with a client whose investment strategy is targeted at strong London locations with an end goal of repositioning commercial assets to best-in-class.
“Understanding their business plan and Delancey’s positive appetite for this sort of project meant that we were able to secure an ideal outcome in what remains a challenging environment.”
Commenting on the announcement, Martin Kom, Director of Real Estate Strategies at Delancey, said: "We continue to have high conviction in central London offices, as demonstrated by our recent financing activity and remain relationship-led in our approach, so are pleased to be working with a high-quality sponsor like ZCS 2. The polarisation taking place within the office market is causing many lenders to withdraw entirely, creating an opening for us to step in. However, we see the shift towards private debt being structural and not purely cyclical, and real estate credit as a whole, will be a longer-term strategy for us.”
Farid Alizadeh from ZCS added, “Farringdon provides another opportunity to add to our growing portfolio of central London offices. We value our ongoing relationship with Delancey and trust their expertise in structuring deals that support our ambitious growth plans of acquiring £500m of central London offices within the next 24 months. It is a real joy to work with a lender who also has a sophisticated background in understanding the dynamics of investing in central London. Delancey as always were quick, honourable and a pleasure to work with.”