ARC & CO. ADVISES ON £13.4M DEVELOPMENT LOAN FOR CRAWLEY BTR SCHEME

Mayfair-based specialist finance advisor, Arc & Co. today announced it has advised Inspired Asset Management on a £13.4m development loan.  

The development is being funded through a £13.4m senior loan from Zorin Finance. 

Commenting, John Kerrigan, Director at Arc & Co., said: “The funding of this residential development is welcome news in a difficult market. It proves that there is still funding available for well-located, well-designed schemes, which are sensibly priced and supported by a good calibre sponsor.”

The former office and retail building will be demolished to make way for 78 new one and two bedroom apartments for rent with a communal rooftop terrace and 7,998 square foot of ground floor retail. It is a 14-month build programme with practical completion anticipated for Q1 2020.  

Inspired Asset Management purchased the building in 2015 and obtained planning permission for the scheme in 2016. The development has an estimated GDV of £21m and is expected to generate circa £1.75m gross rental income per annum.  

With a population in excess of 105,000, Crawley is a thriving commuter town with trains to Gatwick Airport in just 9 minutes and London Victoria in 42 minutes. A substantial growth programme is underway with £31.4m being invested in infrastructure improvements and physical regeneration designed to support new homes, business investment and employment. 

Martin Skinner, Chief Executive of Inspired Asset Management, said: “I’m delighted to announce that we have secured development finance for this exciting scheme, Inspired’s first wholly new-build development, and we can now look forward to adding another asset to our emerging Build to Rent portfolio. Crawley offers fast trains to London as well as being a local employment hub just 4.5 miles from Gatwick Airport. There is strong rental demand, especially for high quality new homes located in the town centre.”

If you you would like to speak to John regarding development finance please find his contact details below.

John Kerrigan
Director
Arc & Co. Structured Finance

Tel: +44 (0) 203 205 2124
Mobile: +44 (0) 750 822 5678
Email: john@arcandco.com

Lender appetite slowly returns to super prime London as Arc & Co. complete £16.8m loan

After years of restricted lending in London’s super prime market and with the few lenders prepared to offer loans against large single assets restricting loan to values to less than 50%, Arc & Co. are starting to see green shoots of optimism with a handful of specialist lenders re-entering the market.

Edward Horn-Smith, Managing Director of Arc & Co. Structured Finance, was recently instructed by an existing client to refinance a development loan on a super prime asset in central London.  The loan was completed in just three weeks from professional instruction.

• Ultra Prime High End single unit

• Bridge to sell

• 62.5% LTV

• 7.95% pa (All in rate)

• £16.8m loan amount

Edward Horn-Smith
Managing Director
Arc & Co. Structured Finance
Tel: +44 (0) 20 3205 2126
Mobile: +44 (0) 778 863 2139
Email: edward@arcandco.com

Arc & Co. achieve hat-trick following the completion on Perini Navi yacht

The team are currently working hard meeting new clients at the Monaco Yacht Show but that doesn’t mean it isn’t business as usual. Arc & Co. are pleased to announce that they have just successfully advised on the finance of a 40m Perini Navi yacht, the third deal to close this month.

Arc & Co. will be in attendance at the Monaco Yacht Show again tomorrow (Thursday 27th) and if you would like to talk to one of the team get in touch at monaco@arcandco.com.

Finance Summary
Yard:                     Perini Navi
Yacht Size:           40m
Yacht Age:           2013
LTV:                      55%
Security:              Asset backed

Arc & Co. helps ex-pat client secure 200 year old Edinburgh property despite challenging circumstances

Clients often arrive at the door of Arc & Co. having been let down elsewhere first. This was the case for a recent client who was trying to purchase a 200 year old property in Edinburgh, Scotland in time for their children returning to university. With the clock ticking, Matthew Wheeler, a financial consultant at Arc & Co., took up the challenge of securing finance for the property and to leave another client more than impressed.

Matthew, gives an overview of the situation and why it presented a challenge. “The client came to us having been let down by a lender elsewhere so was understandably nervous about losing the property he had made a generous offer on. Also, things are always made more challenging when transacting in Scotland where mortgage offers have to be produced before an offer on a property can be accepted.  This made for tight timescales and with a more vanilla case we would have focused on lenders that could move the quickest but instead focused on those who we knew would understand the complex financial situation of the client. Because the client was an ex-pat and paid in dollars, we had to work closely with the lender to make sure they were comfortable with his overall financial position and their long-term financial plans. The client was delighted with the rate the lender offered and security the fixed rate provided. We managed to have the conditional offer issued within 3 weeks of applying and the final offer shortly after in time for their children to move in before starting back at school and university.”

Summary 

• Client:  Couple both UK ex pats resident in America for over 5 years. Buying a UK property for them and their children to use while they are attending UK schools and University.

• Property: Purchase in Edinburgh of 200-year-old property, 5 bedrooms over 3 floors.

• Value:  Purchase price of £731,250 (£56,250 over value because of the market in Edinburgh being very competitive).

• Vendor: – Private couple

• Lender – HSBC 1.69% 3-year fixed rate

• Loan amount - £506,250

Matthew Wheeler
Financial Consultant
Tel: +44 (0) 203 205 2190
Mob: +44 (0) 771 198 9870
Email: matthew.wheeler@arcandco.com

Another August Success for Arc & Co.!

Despite being in peak holiday season, Jeremy Robinson, an Asset Finance Advisor within the Structured Finance team of Arc & Co. has worked tirelessly to complete a £1.15m loan of behalf of his client Hursley Coulsdon LLP.  The finance for a new build development in Coulsdon was arranged despite several parties being on holiday at the time of completion.  Please find details below:

• Loan size £1.15m

• 3 new build houses in Coulsdon in the garden of an existing house

• Client: Hursley Coulsdon LLP

• Completed on time, despite both the borrower and borrowers solicitor being on holiday at the time. Proof it can be done without a last minute rush, if all parties are on board!

• Straightforward development deal completed during an especially busy August for Arc & Co.!

Toby Blythe of Hursley Coulsdon LLP said of the deal “As with most transactions, there were a number of hurdles to overcome but Jeremy Robinson from Arc & Co. was always available and ready to help with whatever was needed along with my Solicitor Tim Brittain, who assured me everything was in order before we both went on holiday.  There were a couple of final calls between Greece & Portugal but in the end the transaction went through smoothly and I’m now looking forward to getting on with building the three houses which should be ready by Spring 2019! ”

Arc & Co.'s Structure Finance Advisor: Jeremy Robinson

Leading Asset Finance Advisory Helps Fund EquaGroup’s Completed Project

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Arc&Co. has had the pleasure of working with a very active developer in the Essex regions. Equagroup Ltd have focused on taking advantage of PDR opportunities in Colchester and Braintree.  Just over 12 months ago we put in place their development facility for their scheme Oak House, the project is now fully complete and sold within weeks of being on the market.

The Project was funded by Zorin Finance, who have been fully supportive of EquaGroup and their scheme. Zorin’s origination Manager, Henry Wilson-Holt goes on to say, “Our thanks go to Arc&Co. for their hard work and assistance in getting this transaction completed initially. This scheme has now been redeemed ahead of schedule and above Redbook value – this goes to show the quality of projects EquaGroup work on, and the local-market knowledge they have.”

Mark Stokes, Director of EquaGroup states, “We are delighted at EquaGroup with this exclusive development completed to such exacting standards and delivering on its promise to all stakeholders including our funding and investment partners, shareholders and of course the local community.”

Since then they have started work on two different PD projects which are going to PC in early 2019. We pride ourselves on repeat business and working with EquaGroup is a prime example.

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Project Details
Location – Central Colchester
LTGDV – 70%
Loan - £1,462,000

Nick Holding-Parsons
Asset Finance Advisor
Arc & Co.

www.equagroup.co.uk

Arc & Co. complete £4.3m loan for 43 apartment permitted development

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. Close £13.75m Loan

Matthew Cleave, a senior advisor of the commercial and development team at Arc & Co. recently closed a £13.75m loan on behalf of his client Barry Howard Homes.  An active developer in the East Midlands market for many years, Barry Howard Homes’ latest scheme is an 11 acre site formerly used as allotments.  The prime location which is close to Northampton city centre has now been secured for the development of 139 homes. The immediate surrounding area has already been developed due to the overwhelming demand for new homes in Northampton.

Matthew explains “We have arranged a syndicated peak debt facility to meet the costs of the scheme in line with the proposed phasing by the client. This allows the client to control costs throughout the term of two and a half years.”

See below for the details:

Deal description: Peak debt facility on a syndicated basis for a phased development of 139 houses

Location: Northampton
LTGDV: 85%
Loan: GBP £13.75m
Blended Rate: 9% per annum
Term: 30 months

Arc & Co. Advise on £7.4m Purchase in Kensington

Eugene Tripuk, Head of Russia and CIS desk at Arc & Co. has closed a £4.8m loan on behalf of a Russian client.

Eugene explains "The finance was for a residential property purchase in Kensington for a Russian client with a rubble income deriving from assets in Russia. The main achievement is that we managed to secure a straightforward mortgage from a private bank at a very competitive rate, and we did so, without the requirement to have assets under management. Considering the market is more cautious of Russian clients at the moment, to achieve something like this, is a great result!"  See below for the details:

Deal description: Purchase of property in central London, for a Russian national with Russian Rubble denominated income. No AUM
Location: Kensington, London
Property Value: GBP £7.4m
LTV: 65
Loan: GBP £4.8m
Rate: 1.85%
Term: 5
Client Nationality: Russian

Arc&Co. successfully advise on the finance of 50 meter Codecasa

Leon Batchelor, Managing Director of Arc & Co. Marine and Aviation has sucessfully adviced on the finance on a 50 meter Codecasa Yacht on behalf of a Middle Eastern Client.

Please see below for details:

Client: Middle Eastern
Yacht: 50 meter Codecasa
Loan to value: 50%
Term: 5 Years
Structure: 'pure' yacht mortgage without private banking

Photo credit: Codecasa Shipyards

Codecasa Shipyards, established in Viareggio back in 1825 by the shipwright Giovanni Battista Codecasa, are an absolutely prominent reality in the luxury yachting industry and are known all over the world as builders of steel and light alloy motoryachts, ranging from 30 to 70 meters LOA.

Still run by the founder’s heirs, nowadays the Codecasa Shipyards Group is able to offer a wide range of Yachts, featured by top quality, technologic innovation, reliability, design and comfort.

Arc & Co. advise Allies Group on £11 million of funding

Arc & Co. has successfully advised the developer Allies Group, on the acquisition and construction finance for the Clarendon House site in central Reading. The project has planning consent for a permitted development scheme of forty-nine self-contained apartments which will form part of major works on phase 1. Planning for phases 2 and 3 are currently being submitted and this will see the scheme grow to circa one hundred residential apartments.  The design will make it an exemplary addition to the fast-growing Reading town.

To assist with the purchase and development, Arc & Co. structured a facility in excess of £11 million with the opportunity for further funding when the planning consent is approved for phases 2 and 3.

Charlie Armstrong said: “Arc & Co. are delighted to have worked alongside Allies Group to structure the debt for this project and to bring forward a scheme that will no doubt be a fantastic addition to the housing stock in central Reading”.

Mario Luca Balducci, Chairman of Allies Group said: “Arc & Co. understood our business model exceptionally well and provided quick, efficient and effective solutions which were beyond typical structured finance arrangements”.

Arc & Co. advises Ktesius on landmark residential scheme in central Brighton

John Kerrigan, Director of Arc & Co. Structured Finance, has successfully advised the developer, Kteisus, on the acquisition and construction finance for the Astoria Cinema site in the heart of Brighton.  The project has full planning consent for the demolition of the existing building to create a mixed use scheme comprising of 70 private residential units, a gym, TV room, ground floor commercial space and 72 cycle spaces.

To assist the purchase and subsequent development, Arc & Co. structured a facility in excess of £20m with an institutional development funder.  This enables Ktesius to secure the site and deliver the development in 2019, forming a new mixed-use residential-led scheme which will bring vitality to the area.

John Kerrigan said: “Arc & Co. are proud to have supported Ktesius to achieve the purchase of this landmark development site in the centre of Brighton. We look forward to assisting them with their future funding requirements”.

Ken MacRae from Ktesius added: “John and the Arc & Co. team are extremely focussed and effective, and we will certainly engage them in the future to advise on debt structuring.”

Arc & Co. advises Inspired on funding for two home county residential schemes with a combined GDV of £27m

The first, Bridge House is a 61-apartment scheme in Chertsey includes a £12.9m senior loan from Amicus.

Bridge House, an early 2000s office building, will be refurbished and extended to provide 39 one and two-bedroom micro-apartments and 22 standard-sized one and two-bedroom apartments close to Chertsey Bridge and the River Thames. The scheme has an estimated GDV of £20.4m. Chertsey is an employment hub with Samsung, Sony, Toshiba, Procter & Gamble and McLaren all nearby.

The second secures £5.2m for a 25-unit build to rent scheme in Farnborough includes a £3.9m senior loan from Octopus.

25 two and three-bedroom maisonettes off Westmead in Farnborough town centre will be refurbished and reconfigured to create high-spec flat shares for rent on a room by room basis. The scheme has an estimated GDV of £6.2m and is situated just 0.4 miles from the railway station for a fast 34-minute train to London Waterloo.  

John Kerrigan, Director at Arc & Co. Structured Finance, said: “The completion of these two high calibre development transactions, along with the £44m Impact House development loan, concludes a very busy, but successful period for Arc & Co, Inspired and our funding partners. To complete three development transactions of this scale and complexity could not have been achieved without very close working relationships between all of the key parties involved.”

Keith Aldridge, Managing Director at Amicus Property Finance, said: “We are delighted to have been able to support this project – a relatively complex deal, driven to success by an experienced and proactive developer and broker, plus valuers Kempton Carr Croft and FieldFisher who managed the legalities. Overall, this is a great example of where effective stakeholder collaboration worked in partnership with our experienced underwriting team to deliver a great result.”

Emma Burke, Head of Development Origination at Octopus, said: “We were delighted to work with Arc & Co., one of our key partners, to structure and fund Inspired’s latest development scheme with our new 65% LTGDV low cost senior stretch development product. This is an extremely well-located residential scheme and forms part of an exciting development portfolio.”

Arc & Co. advise Inspired on securing £44m development loan for flagship scheme Impact House

Inspired Asset Management has secured development finance for Impact House, its £90m GDV, 235-apartment scheme on Croydon’s Edridge Road.

A total of £61.5m was raised through a blend of senior development and mezzanine finance. Arc & Co. advised on the structure of the £44m senior loan from GreenOak.

The development will comprise 197 one and two-bedroom micro-apartments and 38 larger one, two and three-bedroom apartments built to the nationally described space standard, including four exclusive duplex penthouses. Residents will also have access to a ninth-floor communal rooftop terrace and a Wi-Fi Ready club lounge on the ground floor. The apartments will be designed to a high specification, including hardwood flooring, granite worktops and designer bathrooms.

Predominantly a permitted development scheme, Inspired received planning permission to convert the upper floors of the former office building to residential in April this year.

Built in the 1960s, Impact House was extended and refurbished in 2010 before being purchased by Inspired for £25m in 2015. With construction commencing this month, the iconic 16-story building is set to undergo a radical transformation that will see it stripped back to the core and reskinned with an all new contemporary residential facade.

Commenting, Martin Skinner, Chief Executive at Inspired Asset Management, said: “We are thrilled to get funding for what will be our largest scheme to date. The team has worked extremely hard to get it over the line and it is probably the first time in six months that I have seen my finance director with a beaming smile. One thing is for sure, this is going to be a special development that is going to make an Impact in Croydon.”

John Kerrigan – Director at Arc & Co. Structured Finance stated that “Arc & Co. have been privileged to advise Inspired on the funding structure for Impact House, from acquisition right through to development. It is true testament to the quality of this flagship scheme, and the calibre of Inspired, that a development facility of this size and complexity has been structured.”

With prices starting at £304,950 for a one-bedroom micro-apartment, more than 100 apartments have already been reserved.