Arc & Co. secures £840k bridging loan for hotel client

Specialist capital advisory Arc & Co. has completed a commercial bridging transaction with property lender MT Finance, to support a client with additional funds.

Through a new funding arrangement, Nikita Nigai, Head of International Clients at Arc & Co., increased the original loan with MT Finance, extended the term, and released some equity for renovation works.

The 12-month facility was at 60% LTV.

Due to a lack of available transactional data, the hotel – based in Newquay – was subject to a down valuation during the course of the application, which added a level of complexity.

Nikita and the client managed to appeal the valuation, using nearby hotels to make their case, and got it as close to the original figure as possible.

Nikita commented:

“MT Finance were extremely helpful, supporting the client’s position on the asset’s value.

“Fortunately, the client and I acted as a team to provide the necessary evidence, improve the value as much as we could, and achieve a favourable outcome for the borrower.”