Arc & Co. supports developer with £6.5m acquisition and refurb loan

Arc & Co. has structured a £6.5m loan for a developer to acquire and refurbish a mews house in Mayfair.

Working closely with lender CapitalRise, Senior Broker Vishal Dixit managed to secure the funds in just seven weeks.

The facility will be used to finance the acquisition, structural refurbishment and basement conversion of the luxury central London property.

Vishal commented: “We are delighted to have partnered with Katy Katani and CapitalRise for the provision of a senior debt facility for our client.

“This is a wonderful example of what can be achieved with all key parties including sponsor, lender, adviser, and professionals, working collaboratively for the common goal in a tight timeframe of seven weeks.

“CapitalRise’s experience and breadth of knowledge in understanding this sector made them the ideal lender to partner with our client.”

ARC & CO. ARRANGES $14M LOAN SECURED AGAINST LUXURY YACHT

Equity released from the unencumbered asset was required for business capital purposes

Specialist debt advisory firm Arc & Co. has secured $14m for a Middle Eastern client in need of equity release.

The funding was secured against a brand new 50-metre Mangusta 165 REV yacht.

Nikita Nigai, Head of International Clients at Arc & Co. and lead advisor on the deal, worked with a US hedge fund to structure the unique funding package, which was used to release the funds which are to be utilised as a business cash injection.

The 50% LTV facility is for a term of 18 months.

Nikita navigated contracted timescales, confidentiality requirements, and complex legal requirements to get this deal over the line.

Nikita commented: “The first complexity faced is that the usual four- to six-month process with a standard term lender was not acceptable—we needed it funded in a shorter timeframe. 

“Secondly, equity release is not typically the preferred kind of finance offered by many yacht lenders.

“Due to a number of cross-border legal restrictions, we had to find a lender who is experienced and flexible enough to take an individual approach.”

ARC & CO. SECURES £1.2M BRIDGE FOR BMV ACQUISITION

Specialist debt advisory firm Arc & Co. has arranged a bridging loan for the acquisition of three below market value units from a housing association.

Vishal Dixit, lead advisor in the transaction, obtained the loan at 74% LTV and 98% loan-to-purchase, requiring a 2% equity contribution from the borrower.

The £1.2m facility is for a term of 12 months, at a rate of 1.09% per month.

Vishal commented:

“It was important that we reduce the equity stake in the purchase as much as possible, given the client’s plans to refurbish the properties using their own capital.

“Utilising our extensive network of lending partners, we were able to negotiate favourable terms that fit the borrowers’ requirements, getting the deal over the line inside of four weeks.”

Arc & Co. wins prestigious award for second year running

We’re delighted to have been named Debt Adviser of the Year (sub-£50m deals) UK in the REC Awards 2023.

The category was first introduced by Real Estate Capital Europe at the end of 2022 and was won by Arc & Co. - we’re proud to have retained the title for another 12 months.

This year marks the 10th annual REC Awards, with the publication stating “the organisations, transactions and individuals featured across the categories demonstrated impressive activities during the year, against a tough backdrop.”

ARC & CO. ARRANGES £5.8M EXIT BRIDGE, STRUCTURING REPAYMENT TO SAVE CLIENT INTEREST

Specialist debt advisory firm Arc & Co. has secured a £5.8m development exit bridge for a large housebuilder in under four weeks.

The project comprises 14 high-spec residential units in Dorset and was advised on by Arc & Co. Director Cameron Hayes.

 The 12-month, 70% LTV loan, required to take out the existing development debt, will be repaid from sales proceeds pari passu with the existing mezzanine finance at a split of 65/35.

Cameron commented: “The client was looking for a funding solution to refinance senior and mezzanine finance during term, rather than after the senior loan, and we’re pleased to have negotiated an agreed split of 65/35 with the lender to facilitate this, improving the overall economics.”

ARC & CO. STRUCTURES £18.7M IN FUNDING TO REFINANCE LEISURE AND OFFICE ASSETS

Specialist advisory firm Arc & Co. has secured £18.7m from a London based family office for two commercial funding transactions.

The first deal was the refinance of a retail and commercial asset in Ashford. The gross loan of £6.2m facilitated the purchase of high-quality retail and office space in Bristol, with a strategy for value add, regearing leases and marketing to new prospective tenants.

The 62% loan, headed up by Arc & Co. Director Cameron Hayes, is for a term of five years.

“It’s great to complete this with a lender that not only understands the intricacies of retail but also can get comfortable with an international borrowing structure,” Cameron commented.

The second case involved the refinancing of a national leisure and office portfolio.

A gross loan of £12.5m at an LTV of 75% was secured for five years, allowing the client time and flexibility to restructure the group of assets. 

Arc & Co. Managing Director, Edward Horn-Smith, said: “It’s important when advising our clients that we provide them with the best possible options—not just based on pricing, but also by bringing in a funding partner that understands and supports the wider business plan.”

ARC & CO. ARRANGES £4.6M DEVELOPER EXIT LOAN ACROSS THREE PRIME PROPERTIES

Real estate finance advisory firm Arc & Co. has arranged a gross exit bridge of £4.6 million on behalf of an experienced developer client on the South Coast.

Cameron Hayes, Director at Arc & Co., worked closely with Ultimate Finance to get this 70% LTV transaction over the line in under three weeks, facilitated in part by the lender’s flexibility in using an existing valuation to complete the deal.

The 12-month loan is one of Ultimate Finance’s largest transactions to date.

Cameron commented: “This project was a combined effort between all parties, and it is great to complete on this financing for the client with such speed.

“The facility enables the client to pay off more expensive financing and sell through the remaining units over the next 12-months.”

Laurence Travaskis, Regional Director at Ultimate Finance, said: “Having a well packaged case and a broker who really knows the ins and outs of the borrower’s business always allows us to progress quickly—and is something we've come to expect from Arc & Co.”

Arc & Co. arranges £1.6m second charge bridging loan on large single prime asset

Arc & Co. has arranged a £1.6m second charge bridging loan for a developer on a large single asset based in Wentworth.

This loan was required for a different investment purpose and the first charge lender – also Glenhawk – was able to advance the second facility given the relatively low combined LTV.

The value of the property, however, had increased from its original £19m to a GDV of £24.5m during the loan term, enabling Glenhawk to advance a second charge bridging loan.

The loan represented 51% of the GDV and was priced at 1.3% pcm for a term of eight months.

Andrew Robinson, CEO of Arc & Co. and lead broker on the case, commented: “It’s notoriously difficult to place a second charge behind a bridging lender, never mind with the added complexity of this being a prime single asset.

“Glenhawk took a commercial approach to this case, and we managed to match the term length of both loans so that they redeem together—streamlining the client’s overall debt package.”

Glenhawk Managing Director Nick Hilton said: “Collaborating with Arc & Co. for nearly a decade, on multiple finance deals, is testament to their unrivalled expertise in the prime real estate market.

“For this loan, we navigated a dual charge structure, optimising flexibility and precision for an evolving property project. This strategic approach has resulted in a £6 million increase in the properties GDV and an imminent sale (subject to contract) for the client.”

Arc & Co. & Delancey Real Estate close £19.5 million facility for acquisition of prime mixed-use asset

The senior secured three-year fixed rate facility was used to assist a developer

with the purchase in St James’s, Central London

Arc & Co. & Delancey Real Estate have closed a senior secured three-year, fixed rate £19.5 million facility to assist a London-based developer with the acquisition of an existing office in St James’s.

The deal is expected to be the first of many in a market which Delancey believes will be an opportune time for its lending business, given the current retreat of traditional financing sources which are further increasing the need for alternative lenders.

The St James’s based property in London’s West End is a prime freehold, 16,000 sqft mixed-use asset, and the acquisition financing offers a rare opportunity for exposure to a freehold asset in the area’s sub-market.

The developer intends to carry out a comprehensive refurbishment of the property once proposed planning has been achieved. The debt package represents a loan-to-value of c. 70% with the ability for the developer to request capital for the refurbishment.

Philip Kay, Director at Arc & Co. said:

“We were delighted to be given the opportunity to work with two excellent counterparties. On the sponsor side, the developer’s investment thesis is very robust with investments targeted in strong London locations. In a difficult environment for 2023, we were also pleased to work with Delancey as a competitive and flexible capital provider with strong appetite for the asset class and business plan. We look forward to working together with both parties in the near future.”  

Commenting further on the market, Martin Farinola of Delancey said:

“Last year was a volatile time in the market. It was still extremely busy sourcing deals, however there was a certain fragility in closing loans due to lower valuations, sponsors deciding not to execute deals because they weren’t accretive to business plans, or other property-related reasons. The majority of deal flow over the course of the year was certainly refinancing deals rather than acquisitions.  However, in the last few months of 2023 we saw an uptick in acquisitions and attractive deals, signifying a positive market trajectory.”

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ARC & CO. ARRANGES £9.5M LOAN TO SECURE APARTMENT IN LANDMARK OWO BUILDING

The bridging facility was required by an international client to fund

the prime central London purchase

Real estate finance advisory firm Arc & Co. has arranged a bridging loan of £9.5 million on behalf of a private international client for the acquisition of a luxury apartment in London.

The bridging facility was secured from specialist lender West One for the acquisition of an apartment within The OWO Residences on Whitehall, managed by Raffles hotel group.

The loan is for a term of 12 months at an interest rate of 1.15% per month.

Nikita Nigai, private client advisor at Arc & Co., said:

“Approaching the completion date for the acquisition, the client was unable to find and arrange long-term finance and assumed they would be able to receive a completion extension from the developer.

“Nowadays, current market conditions mean that developers usually don’t wait or grant extensions, so we concluded that there wasn’t enough time to secure a term loan. The plan was agreed as a bridge which would then be refinanced onto term debt, for which we already have several interested banks.

“It’s quite important to present a deal with a complex UBO in the right way from day one. Having knowledge of this particular market, I was able to explain all the risks and opportunities and therefore manage clients' expectations correctly.

“West One were quick, even on this complex deal involving a foreign national, and fantastic to deal with.”

Michael Grant, head of sales – bridging and development finance at West One, commented: “Working with Nikita is always a pleasure. On larger deals such as this one, communication is particularly important in order to execute, and attention to detail is vital.

“I praise Nikita’s tenacity and expertise in helping us get the deal over the line; aided by Greg Totton, our senior underwriter, this made all the difference.”

ARC & CO. AND BANQUE HERITAGE STRUCTURE COMPLEX REFINANCE ON CHF 7M SWISS CHALET

Specialist real estate advisory firm Arc & Co. has arranged a new CHF 7 million loan from Banque Heritage to refinance a chalet in Crans-Montana, Switzerland. The loan was arranged on behalf of a HNWI via his Swiss holding company.

Just over half of the facility has been used to repay an existing loan held against the asset and fund renovation works, with the balance providing capital for an investment portfolio to be held and managed by Banque Heritage.

The distinctive 465 sq m chalet occupies a highly prestigious site in Crans-Montana. Located in the French-speaking part of the canton Valais in the southwest of the country, Crans-Montana is one of the most prestigious skiing resorts in Switzerland, regularly featuring in the FIS Alpine Ski World Cup schedule.

Paul Davies, Regional Chairman – APAC at Arc & Co., said: “The international nature of this deal presented a complex set of circumstances, requiring a flexible approach to successfully secure the necessary funding. By working with a Swiss private bank such as Banque Heritage, we were able to take advantage of genuine local understanding to deliver a bespoke solution, with the newly created investment portfolio further deepening the relationship between the two parties. We look forward to working with Banque Heritage on future opportunities.”

Michael Welti, Head of Private Banking at Banque Heritage, added: “One of Banque Heritage’s advantages of being a boutique-sized private bank in Switzerland is the efficiency, agility and speed of execution. With our decades of experience with bespoke solutions to our families and clients, Banque Heritage was not only able to provide a financially beneficial solution to the client, but also efficiently handle all the paperwork and regulatory requirements. Our Senior Bankers truly understand the client centric approach how to serve Entrepreneurs and Executives and offer pragmatic solutions.”

ARC & CO. AND LONDON BELGRAVIA COLLABORATE TO SECURE MORTGAGE ON UNWARRANTIED HOME

Specialist debt advisor Arc & Co., in collaboration with expert defects insurance broker London Belgravia Group, has arranged a new £450,000 mortgage from West One for a barn conversion in Gloucestershire on behalf of a private client.

The client had previously told that the property was unfinanceable due to it being built five years ago without a professional consultants certificate (PCC) or warranty in place. London Belgravia sourced a bespoke warranty, while Arc & Co. liaised with West One to ensure it would be acceptable for mortgage purposes before it was purchased.

As a result of the strategic partnership between Arc & Co. and London Belgravia, the client was able to secure the mortgage at competitive pricing, while parallel sharing of information and valuations mean the loan was agreed to a tight timescale. The mortgage was agreed at 5.44% fixed for five years.

Gareth Briggs, head of UK residential mortgages at Arc & Co., said: “It is hugely pleasing to have arranged a mortgage for a property that the client had previously been told was ‘unfinanceable’. With no warranty or PCC in place, there were significant barriers to be overcome, but thanks to the close working relationship between Arc & Co. and London Belgravia, we were able to reach a result that worked for everyone. We look forward to further collaboration with London Belgravia.”

Giles Fallan, CEO of London Belgravia Group, added: “This deal perfectly illustrates the benefits to clients of the strategic partnership between London Belgravia and Arc & Co. By combining our expertise and collaborating on such deals, we have reached an innovative solution that has resolved an issue that had caused considerable concern for the owner. Our relationship with Arc & Co. is all about combining complementary capabilities, and it is fantastic to see the partnership delivering for clients.”

ARC & CO. ARRANGES £4 MILLION NOTTING HILL MORTGAGE

Specialist debt advisor Arc & Co. has arranged a new £4 million mortgage from a UK-based Swedish private bank to finance the purchase of a family home in Notting Hill, London on behalf of a private client.

The property was acquired for £5.25 million, with the interest only mortgage provided at 76% LTV, with the mortgage structured with an offset facility to allow the clients to utilise funds released from share schemes. The clients also owned multi-jurisdictional assets, with a complex income structure related to share options.

The home is situated on Westbourne Grove, one of the area’s most desirable streets, and offers four bedrooms across ground, lower ground first and second floors, as well as a sizeable private garden, office and self-contained studio room.

Gareth Briggs, head of UK residential mortgages at Arc & Co., said: “The specific circumstances of this mortgage demanded a high degree of trust between all parties. The private bank’s relationship banking model means it had the flexibility and insight to understand the client’s more complex financial requirements.

The Arc & Co. Group is a specialist asset finance advisory company based in Fitzrovia, London and operating across the UK, Europe and Asia. Its three divisions – real estate, marine and aviation – allow it to provide specialist advice across a range of financing solutions, including senior debt, equity, leasing and mortgages.

ARC & CO. ADVISES ABILITY GROUP ON £24.6m LOAN FOR BRISTOL AIRPORT HOTEL

Specialist debt advisor Arc & Co. has arranged a new £24.6 million facility from ASK Partners on behalf of Ability Group, secured against the Hampton by Hilton hotel at Bristol Airport.

The facility is being used to refinance an existing loan and fund an extension to the hotel which will provide a further 50 bedrooms.

In June this year the airport reached a one million passengers per month milestone and has recently received planning permission to undergo an expansion. The expansion includes upgrades to the terminal building, parking and public transport links, allowing for an increase in the annual number of flights departing from the airport and an increase in the total annual passenger capacity from 10 million to 12 million passengers per annum.  The expansion will generate a significant number of new jobs both regionally and at the airport.

Ed Horn-Smith, Managing Director of Arc & Co. said: “Situations such as this, featuring not only the refinancing of an existing facility but also providing development finance to extend a high-performing asset, demand a lender with a firm understanding of the underlying fundamentals and the flexibility to provide a bespoke solution. ASK Partners has a strong track record on deals such as this, and it is fantastic to reach a position that works for all parties. We look forward to working with both Ability Group and ASK Partners on future projects.”

Daniel Austin, CEO and Co-founder at ASK added: “We were delighted to work with Arc & Co. on this transaction to provide Ability Group with the funding required to expand this successfully operated hotel, managed by a well-known brand, in line with the airport’s growth plans. The proposed build, in keeping with the original construction will extend the hotel without disrupting the hotel’s on-going operations. Bristol Airport is the UK’s 8th largest airport, servicing commuters from the Southwest England and Wales. With the increase in travel and terminal side hotel demand post-Covid, coupled with the Bristol airport expansion plans, we felt this was a strong business proposition that we were happy to underwrite.”

ARC & CO. RECRUITS VISHAL DIXIT AS SENIOR BROKER

Specialist debt advisor Arc & Co. has strengthened its team with the appointment of Vishal Dixit as senior broker.

Vishal joins from Pivot, a senior debt lender with a focus on development, where he headed up the origination function since 2017 and was responsible for devising and executing new business strategy, originating facilities of circa £200 million across more than 200 diverse transactions with a GDV of £330 million, with zero capital loss. During his career, Vishal has worked for a number of investment banks and asset management firms including JP Morgan, Morgan Stanley and Schroders Investment Management.

In his new role, Vishal’s focus will be on securing and delivering innovative financing solutions for clients, in particular residential and commercial development facilities. His arrival follows Arc & Co.’s recent unveiling of a new partnership structure, the appointment of James Fleming to the newly-created position of executive chairman and a series of senior promotions – all designed to enhance career development and position the firm for continued growth.

Andrew Robinson, CEO of Arc & Co., said: “Vishal’s considerable experience of the real estate finance market, especially with development facilities, is hugely valuable and will help Arc & Co. provide an even better level of advice and insight to our clients. We are always seeking talent that can complement our innovative, market-leading approach, and Vishal’s arrival underlines our ambitions as we look to broaden our capabilities across not only our existing strengths but new sectors and geographies too.”

Vishal Dixit, senior broker at Arc & Co., added: “Arc & Co.’s reputation in the debt advisory market is second-to-none, and as such it is exciting to be joining the team at a time when it is looking to expand its reach. As borrowers grapple with a range of challenges, the role of top-tier advice becomes ever more important, and I look forward to helping the team continue deliver results for clients.”

The Arc & Co. Group is a specialist asset finance advisory company based in Fitzrovia, London. Its three divisions – real estate, marine and aviation – allow it to provide specialist advice across a range of financing solutions, including senior debt, equity, leasing and mortgages.

ARC & CO. STRENGTHENS TEAM WITH SENIOR PROMOTIONS

Specialist debt advisor Arc & Co. has moved to strengthen its team with four senior promotions.

Tom Berry, Cameron Hayes and Philip Kay have all been promoted to director, while Gareth Briggs becomes head of UK residential mortgages.

The promotions follow the recent unveiling of a new corporate structure at Arc & Co., including James Fleming moving to the newly-created position of executive chairman and the creation of partners for the first time. The new partnership structure has been designed to further brokers’ career development and enhance their involvement in the firm’s wider activities, positioning Arc & Co. for continued expansion.

Andrew Robinson, CEO of Arc & Co., said: “These promotions are just reward for excellent performance, and reflect the new structure we have put in place to ensure clients continue to receive the very best advice. Tom, Cameron, Philip and Gareth are all key members of our wider team, and it is fantastic to reward their efforts with these promotions and set them on the path to the newly-created partnership positions. Alongside James Fleming taking up the new role of executive chairman, this strengthens our senior team to position Arc & Co. for future growth.”

The Arc & Co. Group is a specialist asset finance advisory company based in Fitzrovia, London. Its three divisions – real estate, marine and aviation – allow it to provide specialist advice across a range of financing solutions, including senior debt, equity, leasing and mortgages.

ARC & CO. COMPLETES ON £85 MILLION OF DEALS IN JULY AND AUGUST

Arc & Co. has completed on £85 million of new loans during the past two months, with 24 separate loans arranged with 16 different lenders.

The deals were across a full range of sectors and geographies, including residential mortgages in the UK and Europe, commercial asset refinances, residential development loans and buy-to-let portfolio facilities. Advice was provided by Arc & Co. on a wide spectrum of structures, such as senior debt, mezzanine debt and equity.

Andrew Robinson, chief executive officer of Arc & Co., said: “Summer is traditionally a quiet period for the real estate finance market, but the performance of our team during July and August highlights the ongoing appetite in the marketplace.

“£85 million of transactions – an average lot size of £3.5 million – demonstrates the resilience of the Arc & Co. team in going above and beyond to source finance and finalise deals in a turbulent market. It is also worth nothing the breadth of sectors, structures and geographies that we have worked across during this time. It is a source of great pride that we were able to deliver such strong results over the past two months.

“As we move into Autumn, there is clearly a great deal of demand for finance – and pool of lenders willing and able to provide it – as investors and owners grapple with issues ranging from EPC upgrades and rising development costs to increased interest rate pressures and cover ratio difficulties. We stand ready to help all our clients address the challenges they face, with our trademark innovative approach and commercial focus continuing to deliver results.”

ARC & CO LAUNCHES NEW CORPORATE STRUCTURE WITH APPOINTMENT OF JAMES FLEMING AS EXECUTIVE CHAIRMAN

Specialist debt advisor Arc & Co. has unveiled a new corporate structure to support its continued expansion, with James Fleming moving into the newly-created role of executive chairman.

James has been chairman of Arc & Co. since September 2021, during which time the firm has expanded into new sectors and attracted new talent. As executive chairman, James will have greater involvement in day-to-day activity, enabling him to provide greater support to the wider team and drive further expansion of the group’s services and business partnerships.

James was formerly head of international banking at Coutts & Co., chief executive of Arbuthnot Latham and chief executive of multi-family investment office Sandaire. His experience in running large banking teams, alongside designing and implementing company structures while ensuring the provision of highest-quality advice, remains a key part of Arc & Co.’s expansion strategy.

The new corporate arrangements include the creation of a partnership structure for the first time, designed to broaden brokers’ career development opportunities and enabling greater involvement in the wider group activities. Alongside a simplified team management, the partnership will position Arc & Co. for continued growth.

Andrew Robinson, CEO of Arc & Co., said: “As Arc & Co. grows, it is essential to adapt to better reflect the aims of the business, to attract and develop talent, and continue to provide clients with the very best advice. These new arrangements, with the creation of an executive chairman role and new partnership structure level, puts Arc & Co. in the ideal position to expand its areas of expertise while deepening the brokers’ involvement into other aspects of the firm’s services.

“During James’ chairmanship of Arc & Co., the firm has made great strides in expanding its reach into new sectors and continuing to deliver the very best in debt and equity advice to clients. This new role will enable James to provide even greater day-to-day influence and support, developing our services and business partnerships, as we look to further evolve and remain at the forefront of the market.”

James Fleming, executive chairman of Arc & Co., said: “I am as excited about the future of Arc & Co. as I was when I first joined the team and its inherent strengths, including its reputation for delivering the very best in advisory services, make it uniquely well-positioned for further growth. Becoming executive chairman will enable me to continue to help guide the firm’s strategic direction, facilitate new services and partnerships and assist its ongoing expansion.”

The Arc & Co. Group is a specialist asset finance advisory company based in Fitzrovia, London. Its three divisions – real estate, marine and aviation – allow it to provide specialist advice across a range of financing solutions, including senior debt, equity, leasing and mortgages.

ARC & CO ARRANGES £10.4 MILLION LONDON INDUSTRIAL DEVELOPMENT LOAN

Specialist debt advisor Arc & Co. has arranged a new £10.4 million loan from Ortus Secured Finance to facilitate the acquisition of a prominent light industrial scheme in London.

When complete, the development will provide 29,000 sq ft of industrial space across a 2.3-acre site with work expected to finish in the second half of 2024. The borrower is planning to lease and hold the completed asset while it advances a significant residential-led scheme in the area, which is part of a broader masterplan.

“We are delighted to have worked with Arc & Co to provide the financing for the client,” said Jon Salisbury, Managing Director at Ortus Secured Finance. “The successful financing of this deal is a testament to our team’s ability to navigate complex financing structures and working with Arc & Co, with their impressive track record in introducing high-quality clients, always makes the deal more straightforward. This project is a significant development for the area, and we are confident it will boost the local economy. We are proud to be supporting this project and helping make it to fruition.” 

Ed Horn-Smith, managing director at Arc & Co. said: “Both the borrower and Ortus have considerable experience in this sector, and as such it has been a great experience to work with them on this facility. We look forward to seeing this exciting project progress.”

The Arc & Co. Group is a specialist asset finance advisory company based in Fitzrovia, London. Its three divisions – real estate, marine and aviation – allow it to provide specialist advice across a range of financing solutions, including senior debt, equity, leasing and mortgages.

Ortus Secured Finance is a property finance company based in central London, with offices around the UK. It lends from £100,000 to £25million for terms of up to three years, secured over a wide range of residential and commercial property. Ortus Secured Finance has a strong track record of providing financing for complex development projects, and it is committed to helping businesses achieve their growth goals. 

ARC & CO ARRANGES £16 MILLION DEVELOPMENT FINANCE LOAN FOR BATTERSEA INDUSTRIAL SCHEME

Specialist debt advisor Arc & Co. has arranged a new £16 million facility from Ingenious Real Estate to finance the development of a light industrial scheme in Battersea, south-west London.

The finance has been arranged on behalf of a private developer client at a loan-to-gross-development-value (LTGDV) of 65%.

The developer is constructing 30,000 sq ft of high quality general industrial and last-mile distribution space, following planning permission being secured in May. Work on the scheme is expected to complete in Autumn 2024, at which point the developer will look to lease and hold through refinancing onto a longer-term facility.

The new loan is the second arranged between the two parties. Arc & Co. arranged bridging finance from Ingenious Real Estate to acquire the site in summer 2022, enabling the borrower to benefit from short-term income during the planning process. The bridge was arranged at 70% loan-to-value, with the roll onto development finance at 65% LTGDV releasing equity for further acquisitions.

Cameron Hayes, asset finance advisor at Arc & Co., said: “Ingenious Real Estate is one of the leading specialist funds for speculative commercial developments and was extremely flexible to work with throughout the arrangement of these loans. We look forward to seeing the project built out and working with our client on the refinancing once work has been completed.”

Harry Cloke, Investment Director at Ingenious Real Estate, added: “This is a highly experienced developer and another top introduction from Arc & Co. We are delighted to be continuing the project into the development phase and adding to our ever-growing industrial strategy alongside our more established residential, mixed-use and bridging offering.”

The Arc & Co. Group is a specialist asset finance advisory company based in Fitzrovia, London. Its three divisions – real estate, marine and aviation – allow it to provide specialist advice across a range of financing solutions, including senior debt, equity, leasing and mortgages.