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ARC & CO STRUCTURES £18m OF BTR DEVELOPMENT ...

New facilities to fund development of 181 residential units in the South East

ARC & CO STRUCTURES £18m OF BTR DEVELOPMENT LOANS
LAUREN MARKS-CLEE
Dealing with change: why developers must review ...
Dealing with change: why developers must review their corporate financing strategy

Arc & Co. Secures £5.7M Senior Development Facility for 8 New Houses

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Arc & Co.’s Julian King, Asset Financial Advisor, arranged a development loan for his client who is building 8 new houses in a park-land setting as well as refurbishing a former coach house and vicarage.

Asset:              8 new houses in a park-land setting and a former coach house and vicarage

Loan:               Senior development facility of £5.7 million. With an additional slice of mezzanine funding totalling £700,000. Total facility £6.4 million (65% LTGDV/87% LTC)

Gearing:          65% LTGDV/87% LTC

Term:               18 months

Rate:                7.5% p.a 

For more information about this debt solution, please contact:

Julian King, Senior Asset Financial Advisor

Office: +44 (0)203 205 2190
Mobile: +44 (0)773 445 7547
Email: julian@arcandco.com

Arc & Co. in the Press - Three Different Articles in One Day!

 Avamore Capital and Arc & Co. close development facility for Berkshire scheme - led by Matthew Yassin
Read more: http://bit.ly/2VWVeb3

The Development Finance Market and how it has evolved over the years - a new blog series written by Andrew Robinson Read more: http://bit.ly/2PZFz7o

Arc & Co’s Director of Aviation Finance, Gary Crichlow, Discusses Costs and Financial Considerations of Aircraft Ownership

In the first of two articles for EVA Magazine, Arc & Co’s Director of Aviation Finance, Gary Crichlow, takes a look at the costs and financial considerations of aircraft ownership. Key industry experts also share their thoughts about managing the costs of ownership - saving you money, making your money work harder, and avoiding expensive mistakes.

Key industry experts that contributed to this article include:

  • Nick Houseman, co-owner and board member of operator Elit’avia

  • Nel Stubbs, Vice President at Conklin & de Decker

  • Colin Brickman, Managing Partner at Switzerland-based aviation technical advisory firm CAMO4jets

  • Lou Seno, Chairman Emeritus and Special Advisor at Jet Support Services Inc (JSSI)

  • Côme Charron, European Sales Director at aircraft broker Guardian Jet

https://lnkd.in/dm89XKB

Arc & Co. has Completed a £19.25M Refinancing of a Hampton by Hilton Hotel in the Home Counties.

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Arc & Co completes the £19.25 million refinancing of a prominent home counties Hampton by Hilton hotel.

The hotel is centrally located in a prime South East town. It is directly opposite several major transport connections, at the heart of a major mixed-use development and regeneration scheme. With easy access to central London and a major international airport, the hotel benefits from strong leisure and business client occupation, underpinning its consistently robust performance.

Arc & Co, who have recently completed record lending volumes, acted for the borrower, an established private investor, with multiple commercial and residential property portfolios.

Edward Horn-Smith, Managing Director – Structured Finance at Arc & Co, commented: “We are always excited to work with a borrower to help them structure and expand their real estate portfolios. The loan provided by Octopus Real Estate has once again supported an important client of ours who has a proven ability in the real estate development, investment and management markets.”

Dominic Gibson, Investment Director at Octopus Real Estate, said: “This is another significant UK hotel financing for Octopus Real Estate. The sector has performed well throughout uncertain times, and our appetite for funding branded hotels is extremely strong. We have worked closely with Arc & Co for many years, providing funding to their high-quality client base across a range of asset classes. Broker relationships and repeat business underpin our lending and we are extremely grateful to Arc & Co for their continued support.”

Featured in:

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Arc & Co. Arranges £2.5M Exit Bridge Loan for 19 Flats and 2 Commercial Units in Colchester

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Arc & Co. arranged a £2.5M exit bridge loan for a repeat client. This exit bridge loan was against 19 flat and 2 commercial units in Colchester.

Deal highlights:

  • £2.5M exit bridge loan

  • Originally the block was 26 flats and 2 commercial units.

  • LTV: 70% at 6.99% per annum

  • Loan was completed in 4.5 weeks

We were able to get the lender to use the previous valuer which meant the report was turned around in 4 days as they knew the property. Other lenders would not have accepted this.

Arc & Co. Close £2.3M Development Loan Against 12 Resi-to-Student HMO Properties

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Arc & Co. have successfully structured and closed a £2.3 million development facility with a private lender against 12 separate properties in Liverpool.

Each property was an individual terraced house, which will now be converted to high specification student HMOs and ultimately let to the growing student market in one of the UK’s fastest growing cities.

Arc & Co. Structured Finance team comments: “Working on this opportunity was hugely exciting. Having previously worked with the same clients on individual units, I knew exactly how they worked and what they would want to achieve with this project. We managed to save the client approximately 5% interest per annum, by grouping several properties together rather than treating them as individual projects. This obviously generated a saving on professional fees as well as ongoing monitoring costs across the course of the transaction.”

They go on to add: “The loan was highly competitive for this type of project: 65% loan-to-gross development value, including 100% of construction costs, at 7% per annum with a 2% arrangement fee and no exit fee. Obviously this type of loan isn’t available for everyone, but for experienced clients building quality properties, these rates are available.”

Jordan Silverstone, Founder of Brickworks Properties, commented: “We’re glad to have found a sophisticated broker and lending partners who understand our model, can support our growth and will allow us to scale.”

Arc & Co. Secures Mortgage for Self-Build Client

Arc & Co. Secures Mortgage for Self-Build Client

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Deal:

Client had been let down by another broker, who had assured him that it would be fine. Client started the work on the basis that money would be coming and then the deal with Hanley BS fell through.

Client had a partially built site and had run out of cash. He was director of four companies and had a very complex set of income streams, including a directors loan whereby he had taken the bulk of his income in the last three years. This had now stopped, but his tax returns were very low.

Solution:

Alistair placed this Harpenden BS who took a view on the clients share of net profit in the companies, and were happy to ignore the directors loan.

The site was worth £450,000 partially built, with an end value of £950,000.

We funded a deal of £250,000, with funds released in three tranches as the property increased in value.

4.39% self build mortgage with no early repayment charge.

Clients were delighted with the outcome.

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. Advises on the £1.76M Exit Bridge Loan for 43 House Development

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Existing client based in the Home Counties successfully developed 43 2 and 3 bedroom houses in a desirable market town. With the last few units remaining the client wanted to release equity in which to purchase another site for future pipeline.

Julian arranged an Exit Bridge so that the client would not pay unnecessary fees when disposing of the remaining units. The facility was 70% LTV at 4.9% for the first 7 months attracting no ERC’s or exit fees. This was the most cost effective solution when comparing against a BTL product, whilst ensuring liquidity for the client.

Loan size £1,760,625

For more information about this Exit Bridge solution, please contact:

Julian King

Asset Finance Advisor

Office: +44 (0)203 205 2190
Mobile: +44 (0)773 445 7547
Email: julian@arcandco.com

Arc & Co. Arranges £8M Loan for 553-Bed Hotel Development in Liverpool

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Arc & Co. advised on an £8m loan for a hotel operator in the North West.

The funding will support the initial stages of a 553-bed hotel development in Liverpool. 

The specialist debt advisory secured the net loan of £8m against the residual value of the business plan, and the initial works will be followed by extensive refurbishment. 

Planning consent has been granted to convert a part-vacant, eight-storey office and retail building into a 125-suite hotel.

Once trading, the hotel is expected to have a projected value of over £30m, with the building currently valued at £13m. 

“This was a very interesting transaction given the intuitive response by my clients to reposition this asset,” said Charlie Armstrong, asset finance adviser at Arc & Co (pictured top). 

“Securing a leveraged position against the residual value of this consent shows that there are solutions to the evolving nature of the tertiary office/retail market. 

“Ultimately, it comes down to the strength of the business plan, so kudos to my clients for their delivery of this opportunity.”

Charlie Armstrong
Asset Finance Advisor
Structured Finance

Office: +44 (0) 20 3205 2127
Mobile: +44 (0) 771 705 4937
Email: charlie@arcandco.com

Arc & Co. Announces Record Month of Bridging

Arc & Co. Structured Finance completed seven bridging loans totalling almost £29.6M in October, representing its best month ever for bridging.

In total, the specialist debt advisory arranged 11 loans during the month, with the remaining four completions being development-based, with the overall loan amount totalling over £47m.

The average loan size for October stood at £4.5m.

Andrew Robinson, CEO at Arc & Co (pictured below), suggested that the figure could be attributed to the “uncertainty” currently attached to the specialist commercial and development lending options available in the market.

“Clients above all want completion certainty in a deal and with senior lenders being more cautious in this market, clients are using bridging to secure their purchases, which then allows time to asses all senior lending options to make sure the correct funding package is in place.
 
“Another point to add, is that out of the 11 loan completions, eight different lenders were used.

“A wide range of lenders were required because of the geographical spread and the speciality requirements of the loans.”

Arc & Co recently secured a £9m senior bridging loan with West One Loans against a vacant office building in London valued at £14m.

The debt advisory also recently appointed Matthew Yassin and Charlie Gordon to its team.

Arc & Co. Arranges £9M Bridging Loan on Vacant Office Building

Arc & Co. Structured Finance has worked with West One Loans to secure a £9m senior bridging loan against a vacant office building in London valued at £14m.

The loan was completed within one month of proceedings commencing, with mezzanine finance provided by a private second charge lender.

Sam Le Pard, asset finance adviser at Arc & Co, said: “This was a fascinating transaction to work on.

“Although the property did not have development consent at the time, it had a long history in planning and there was a great story to tell around the sponsor.

“To get to the net loan amount that the client required, we settled on a part-serviced, part-retained interest structure across the senior and junior debt. 

“In order to achieve this, we had to work with sophisticated lenders who would understand the building, both in its current commercial state and as a residential development opportunity.” 

Danny Waters, CEO at West One Loans and Enra Group, added: “It was great to work with Arc & Co on another satisfying transaction. 

“We are delighted to be able to support these types of client and at every stage of their development process. 

“Arc & Co drove the process throughout from conception to completion.”


For more information on this deal or how we might be able to advise you on a similar deal, please contact Sam Le Pard:

Office: +44 (0)20 3205 2195
Mobile: +44 (0)79 1715 4432
Email: sam@arcandco.com