Mayfair-based specialist debt advisor Arc & Co., has recently completed £70 million of loans for the refinancing of 3 prime residential London assets. The loans have a maximum loan-to-value (LTV) ratio of 65% and were all completed in the last month of 2018.
The loans provided refinancing for three development sites in Holland Park, St Johns Wood and Hampstead. The sites comprise a single development unit with a red book value of £50 million, a further single unit with a red book value of £34 million and a multi-unit development site comprising 31 apartments and 4 townhouses, with a red book value of £34 million and aimed at investors and individuals looking to downsize.
The London prime residential property market has been in decline since 2014 with very few lenders supporting the high value market.
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“There has been a slight reverse in funding of prime residential property in the last 6 months, with new funding lines now available to developers. Following years of funding restrictions in the prime residential market, investors are now seeing the relative value and taking a longer-term view.
Over the past 3-4 years, it has been incredibly hard to finance central London development sites and these loans and the LTV ratios achieved, show that there is still liquidity available for the right projects and best sponsors.”
Contact:
Edward Horn-Smith, Managing Director, Structured Finance - Arc & Co.
T: +44 (0) 20 3205 2126 E: edward@arcandco.com