Arc & Co. has completed a gross loan of £4.3m to facilitate the construction of 43 apartments. Their client originally bought an existing office with PD rights for circa 25 apartments but through a shrewd understanding of local planning policy, achieved enhanced planning for nearly double the number of apartments. Arc & Co. were asked to arrange a relatively lowly geared loan and this meant they were able to structure a facility with an attractive headline interest rate.
Charlie Armstrong said 'This is an impressive project as my client has maximised the value of the site through a clever understanding of planning regulations. There is a clear focus on the high demand from first-time buyers and being situated just 25 minutes from central London the apartments are sure to sell very well.'
See below for details:
Deal description: Office to residential PD scheme
GDV: GBP £10.0m
Loan: GBP £4.3m
Rate: 4.5% over LIBOR
Arrangement Fee: 1.25%
Exit fee: 1.25% of loan facility
Arc & Co. complete £4.3m loan for 43 apartment permitted development