Great piece in Bridging & Commercial about the panel of speakers, including Arc & Co.'s Edward Horn-Smith, providing insight on the future value of real estate in a post Brexit Britain.
Arc & Co's Matthew Yassin's Five Minute Interview with Bridging Loan Directory
Arc & Co. is a specialist debt advisory with headquarters in Mayfair, London providing specialist advice on real estate, marine & aviation assets.
Arc & Co. was awarded Development Finance Broker of the Year at the Business Moneyfacts Awards 2019 for the third consecutive year.
We speak to director, Matthew Yassin:
What is the best thing about being in the bridging and development finance business?
The fact that it is a dynamic environment and one that is constantly evolving. With global and local market movements and political uncertainty potentially affecting lending, directly or indirectly, it will always be an exciting and interesting business to be part of. On a more micro note, providing solutions for entrepreneurs and enabling homes to be built is a satisfying part of the job.
What keeps you focused?
In any industry you must enjoy what you do daily as this is where you find your passion. I find that working in the commercial finance industry keeps me focused, as I enjoy dealing with the ‘spilt wine’ that comes with every deal. Finding a way through things is particularly satisfying and the feeling of achievement once the deal completes is infectious!
What qualities do you look for in your employees or colleagues?
In my opinion this is an easy question to answer. It’s the simple things such as the ability to ask questions and re-read emails before sending them that really makes a difference. Raw talent is never enough these days; it’s the drive and curiosity that enables people to deliver against their objectives….. and this is something that you cannot teach!
Are you an optimist or a pessimist?
I always look up to the sky and smile. Its important to be conservative when needed but having a positive outlook on both life and business can lead to a great balance. Colleagues and clients can really benefit and feed off someone with a glass half full approach – even when there is no water in the glass!
What did you want to be as a child?
A commercial airline pilot.
What will be the greatest challenge facing the bridging and development finance industry in the coming months?
I think the lending industry will always face different kinds of challenges by virtue of who the industry supports; developers, commercial businesses, individuals, overseas investors and so on. However, over the next few months, the uncertainty surrounding the political environment will certainly present challenges. Although most lenders have already built this into their approach, it would be naïve to ignore the potential effects of the changes that will be upon us whichever way things end up.
Who or what makes you laugh?
Lots of office banter!
Do you dread Monday mornings?
You would dread something you do not enjoy, but I am very lucky that I get to work in an industry that I genuinely enjoy and want to be involved with. At Arc & Co., I look forward to Monday mornings as I don’t view this as a job and instead see it as me fulfilling a passion. I want to be successful and to keep learning and developing so that the advice that I give to my clients is always accurate and up-to date.
If you could change one thing about yourself, what would it be?
Lots of things that I could not possibly talk about in this interview!
With whom would you most like to have dinner?
Daniel Levy – I would ask if I could refinance the Tottenham Hotspur football stadium development finance facility, as I hear they’re re-positioning the debt as we speak!
Arc & Co. Advises on Funding for Limited Company that Owned Both Leasehold and Freehold
Deal:
Client, a very experienced developer, had built a small studio flat in Tunbridge Wells as part of another development. This was unencumbered, and the clients wished to capital raise to go towards their next project.
The primary challenge, it is a small studio flat, and both the freehold and leasehold were held in limited companies.
Property Value: £130,000
Loan Amount: £97,500
Solution:
After three other brokers turned down the chance to fund this deal, Arc & Co. kept persevering and found Gatehouse Bank, a specialist bank, were in a position to provide finance, as they were able to take a view on the wider view on the security and the client.
Alistair Hargreaves, Financial Consultant at Arc & Co. said,
“Its key for my clients that I am able to use my experience and knowledge to place a whole range of deals, especially the more complex and unusual ones. Having a provider such as Gatehouse Bank, is ideal as they are able to underwrite a proposal on its merits, and they will listen to a business case.”
Paul Stockwell, Chief Commercial Officer at Gatehouse Bank, explains,
“At Gatehouse Bank, we believe human underwriting suggests a degree of common sense and flexibility applies — and that’s absolutely essential. It is not a box-ticking exercise and should not just be a computer-based scoring system by another name. This is especially important for customers with more complex circumstances.”
If you wish to learn more about your residential mortgage options, please feel free to contact Alistair.
Alistair Hargreaves
Financial Consultant
Arc & Co.
30 St George Street, London, W1S 2FH
Office: +44 (0) 203 205 2129
Mobile: +44 (0) 796 750 9318
Email: alistair@arcandco.com
Arc & Co. Structures £7.25M Loan for Trophy Asset in Prime Central London
DEAL:
Arc & Co. structures £7.25M loan for high value trophy asset in Prime Central London.
Loan Amount: £7.25M
Property Value: £14M
Location: Mayfair
Rate: 4% fixed interest rate with 3-year rolled up interest
SOLUTION:
Due to the client having variable income, the loan amount could not be determined by a conventional income multiple. A business plan was drawn up showing the client’s future growth for his business combined with the current retained earnings, allowing us to get to the loan amount desired.
If you wish to learn more about your residential mortgage options, please feel free to contact our Residential Mortgage team.
Arc & Co.
30 St George Street, London, W1S 2FH
Office: +44 (0) 203 205 2129
Arc & Co. Structures Development Loan for Eco Bungalows in Cornwall
Deal
A ground up development of two 3 bedroom eco bungalows with swimming pool on the North coast of Cornwall close to St Ives Bay.
Loan Amount: £647,500 (100% of the construction costs)
Rate: 4.3% above 3 month LIBOR
LTV: 55% Loan to GDV
Terms: 15 months
Solution Provided
The client who is an experienced builder of 35 years with a great portfolio of private projects in the area, had never needed development financing before. He had been quoted an unrealistic facility with high interest that wasn’t suitable for the development by a local broker for a bridge product. After going to a few challenger banks for a small development facility, Julian King secured a solution by choosing to work with Principality Building Society as they are based in Cardiff, which kept the MQS fees to a minimum as well as providing an incredibly competitive interest rate.
David Burrows, Owner of Burrows Construction Ltd, said, “I was introduced to Julian who has successfully helped in sourcing development finance for my project “The Firs”. He was incredibly professional and diligent always keeping me updated with progress as well as guiding me through the application stage and driving the facility through to completion. Julian’s knowledge of the market helped me to raise suitable debt at very competitive prices, his development knowledge also ensured that we streamlined our monitoring processes keeping costs to a minimum. He has become a trusted adviser that I look forward to working with again on my next project.”
For more information about this deal, please contact Julian King:
Julian King
Asset Finance Advisor
t +44 (0) 20 3205 2190 | m +44 (0) 77 344 57547
30 St. George Street, Mayfair, London, W1S 2FH
Arc & Co. Advises on £1.38M Loan for Office Conversion into 8 Flats
Deal Breakdown:
Refurbishment to convert an office block into 8 residential units on Tonbridge High Street.
£1.38M
15 months
89% LTC
Solution Provided:
Competitive pricing with Avamore at 0.54% a month at 75% LTC and then bringing in Crowdlords to plug the gap in such short notice.
For any further information, please contact:
Tom Savill
Asset Finance Advisor
t +44 (0) 20 3205 2123 | m +44 (0)798 3400 318
Nick Holding-Parsons' Article in Business MoneyFacts on Build-to-Rent Funding
Arc & Co. Secures £1.7M BTL Refinance for 7 Flats
Arc & Co. Secures £1.7M BTL Refinance for 7 Flats in Chertsey
Deal breakdown:
£1,764,000
5 year fixed @ 3.99%
80% LTV
This capital raise enables our client the acquisition of future development sites. 80% LTV mitigates relatively harsh valuation due to lack of up to date comparables. This allows our client the advantage on a sale to keep the net proceeds.
For any further information, please contact:
Jeremy Robinson
Asset Finance Adviser
t +44 (0) 20 3205 2199 | m +44 (0)7976 737552
Arc & Co. Completes £2M Residential Loan for International Client
Client: Nigerian resident domicile who works in the oil & gas industry
Requirement: Arc & Co. worked with this client on a refinancing basis and to redeem an existing loan with a lender that had moved away from the African market. The property was however, owned via a Channel Island trust.
Solution: We secured a £2M loan on £3M property at 1.75% over Libor and with an initial redemption of £250,000, with a further £250,000 to come in 6 months. This was over a 5-year period and interest only.
Contact:
Daire Dowling, Managing Director - Arc & Co. Private Finance
T: +44 (0)20 3205 2196
Arc & Co.'s Nikita Nigai Featured in Forbes Kazakhstan!
Why the Acquisition of London Property is Still Advantageous and Profitable
“‘Currently, the UK finance market can offer a solution for almost every client. If you do not wish to pay a large lump-sum payment straight away, it is worth to think about the mortgage which is being offered nowadays at 1.5% and goes up to 75% LTV with the term from 2 to 35 years. The property, in this case, would be the only collateral. In the past year we have noticed extensive interest from Kazakhs investors, where, in most cases, clients acquired an investment - BTL properties. It should be noted, that sometimes rental income can cover your mortgage interest payments, which is another advantage/argument to use the mortgage today.’”
For further information, please contact Nikita on:
Nikita Nigai
Asset Finance Advisor
Arc & Co. Private Finance
T: +44 (0)20 3205 2122
E: nikita@arcandco.com
Arc & Co. Secures Loan for Refurbishment & Ground Up Works for Bungalows in Berkshire
Arc & Co. advised on the £220K loan for the refurbishment of a bungalow in Berkshire and the ground up development of a new bungalow adjoining to the existing.
Bridge lenders do not favour ground up works, therefore we were keen to collaborate with Think Property Finance who were on hand to help.
This deal was even more interesting as the borrower was able to JV with a land owner who was completely separate from the transaction. We were able to use their land as security.
Tom Savill
Asset Finance Adviser
t: +44 (0) 20 3205 2123
m: +44 (0) 79 8340 0318
tom@arcandco.com
30 St. George Street, Mayfair, London, W1S 2FH
www.arcandco.com
Arc & Co. Secures £600K Bridge Loan for 4-Star Boutique Hotel in Newquay
Nikita Nigai, Financial Advisor at Arc & Co.’s client needed equity release from Newquay Beach Hotel, a boutique 42 room 4-star hotel, to complete its refurbishment. Even though the client did not have any experience in the hotel business, Nikita found a solution. He was able to advise the client to obtain a £600,000 bridge loan against £2,200,000 value with a rate of 0.85% monthly for 8 months with the possibility of a 16-month extension rolled up.
Newquay Beach Hotel
Contact:
Nikita Nigai
Asset Finance Advisor
Arc & Co. Private Finance
T: +44 (0)20 3205 2122
E: nikita@arcandco.com
Arc & Co. Completes Residential Loan for Refinancing in 10 Days
Arc & Co. advises on the £1.2M loan for the refinance of residential mortgage that had ended and lender wanted repaying. Client is a developer and had no regular income for three years. He owns a plot of land that with planning (yet to be granted) would be worth in excess of £30M.
Where
Barnet
Loan Size
£1.2M on £4.5M
Solution Provided
Two year rolled up loan with Market Harborough, allowing the clients to refinance the £1M and take out a further £200,000 for living expenses whilst the sale progresses at 5.99%.
Unique angle
Alistair provided a non-income based residential loan over a two year period at a cheaper rate than a standard bridge. He also negotiated an extension for a further 12 months at the same rate but reduced fee if the sale of the land has not completed in two years’ time.
If you wish to learn more about your residential mortgage options, please feel free to contact Alistair.
Alistair Hargreaves
Financial Consultant
Arc & Co.
30 St George Street, London, W1S 2FH
Office: +44 (0) 203 205 2129
Mobile: +44 (0) 796 750 9318
Email: alistair@arcandco.com
Case Study: Arc & Co. secure a 80% LTV loan for 4 branded, city-centre hotels in the UK and Scotland
Client: Private Client
Requirement: A total loan of £66,280,000 for 4 branded, city-centre hotels located in the UK and Scotland
Solution:
Arc & Co. completed the loan for 4 branded, city-centre hotels located in the UK and Scotland. Edward Horn-Smith, Managing Director at Arc & Co., arranged the loan totalling £66,280,000. The loan consisted of both senior and junior debt; with a combined loan-to-value (LTV) of 80% and a blended margin of 3.4%. The loan is for a 5-year term and on an interest-only basis.
The availability of hotel financing has contracted over the last 2 years, but this deal demonstrates that there is still competitive financing available for good quality assets and with the right sponsor to back it.
Contact:
Edward Horn-Smith
Managing Director - Structured Finance
T: +44 (0)20 3205 2126
E: edward@arcandco.com
Arc & Co. Secured a Quick Turnaround Mortgage with Fixed 1.9% Rate for 5 Years
Our clients were looking to purchase a new build detached property in Northern Ireland for £377,500. The vendors of the property were pushing to complete within 4 weeks since they had previously sold the property, but it fell through late in the process. Despite the time crunch, we were able to secure a mortgage offer from Barclays within 2 weeks of the application being submitted, and completion occurred within 4 weeks. We secured a rate of 1.9% fixed for 5 years with Barclays for a loan size of £237,000. Clients were Directors of two companies and had just started a third. The case was also falling short on affordability, however after submitting the accounts to the underwriter it was signed off as affordable.
“Gareth Briggs was very responsive and helpful. I ended up getting a fixed deal that was lower rate than my usual bank while still having a good permitted overpayment allowance.”
Gareth Briggs
Mortgage and Protection Specialist - Arc & Co.
T: +44 (0) 203 205 2122
Arc & Co. launch Aviation Insight Series
Arc & Co. are pleased to announce the launch of their Aviation Insight series, which will see Arc & Co. team up with the leading experts in the Aviation sector to explore a multitude of topics. Aimed at HNWIs and their teams, we want to tackle the areas that are often overlooked or misunderstood.
TODAY we release 'Why cash isn't always king when it comes to private jets' which has been written in collaboration with Iain Houseman - Chief Operating Officer at Elit'Avia.
Arc & Co.'s e-newsletter - Monthly Round Up - is out now!
Arc & Co.’s e-newsletter - Monthly Round Up - is out now!
To view it, click on https://lnkd.in/dZu-nMW
Case Study: Arc & Co. secure long-term funding for an investment student block
Client: Private Developer/Investor
Requirement: Working on behalf of a new client, Arc & Co. secured long-term funding for an investment student block. The project comprised 29 student studios in a converted two-storey retail and office block in West Drayton.
Solution:
· Gross loan - £3,185,000
· Term – 5 year
· LTV – 65%
The team had to overcome a couple of factors in order to complete the loan. As the property had only been converted for 1 academic year, there was no proven track record. However, due to the quality of each studio and the location, the client achieved 90% occupancy in year one and 97% at the start of the 2018 academic year.
Contact:
Nick Holding-Parsons
Asset Finance Advisor
T: +44 (0)20 3205 2191
E: nick@arcandco.com
Case Study: Arc & Co. secure £8M funding for residential development scheme in Wembley, London
Client: Private Developer
Requirement: Arc & Co. worked on behalf of an existing client to secure funding for a residential development scheme in Wembley, London. The project comprises twenty residential units, 4 terraced houses and two apartment blocks, providing 16 split-level flats. Four of the flats are to be delivered as affordable housing units.
Solution:
· Gross loan - £8,251,820
· Senior Debt - £6,866,000
· Mezzanine debt - £1,385,820
· LTC – 96%
Several factors made this transaction complex, which included: completing on the land purchase within 6 weeks, aligning the senior and mezzanine lender in a short period of time with no intercreditor deed in place, finalising the S.106 with the council in time to satisfy the lenders conditions.
Contact:
Nick Holding-Parsons
Asset Finance Advisor
T: +44 (0)20 3205 2191
E: nick@arcandco.com
Arc & Co. Advises on the £10.45M Recent Delivery of a Sunseeker 131 Yacht
Sunseeker 131
Finance was on the completion and delivery of a Sunseeker 131.
Loan: £10.45M
LTV: 60%
Term: 5 years
Interest: 3.59% interest margin
Balloon on 50% payment
For more information about this deal or how we could help advise you on marine debt financing options, please contact:
Eugene Tripuk
Head of Russian & CIS Clients
Arc & Co.
e: eugene@arcandco.com
www.arcandco.com