Cameron Hayes, Director at Arc & Co., has supported a property developer client with a £5m bridging loan.
The scheme comprises 70 apartments, with two thirds sold off-plan.
The 70% LTV facility is for 12 months and will provide the developer with time to sell through the remaining units.
The fact that the developer had successfully exchanged on the majority of the units meant that the lender was comfortable advancing the short-term finance.
Cameron commented:
“Sales and marketing bridges are still a popular funding requirement for developers as the market continues to stabilise.
“Apartments can be tricky to get funding for, and this scheme had the added complexity of ground-floor commercial space that was unfinished and unlet. The lender took a pragmatic view of the deal and the borrower—who had successfully demonstrated his ability to sell the units—and structured their facility to allow for a release of equity on each sale, as well as a competitive margin over base.”
Arc & Co. continues to identify the most competitive short- and long-term financing solutions for clients.