NEWS
Arc & Co. appoints experienced banker as Chairman
Arc & Co. are pleased to announce that James Fleming, has been named Chairman of Arc & Co.
James was formerly Head of International Banking at Coutts & Co., Chief Executive of Arbuthnot Latham and most recently Chief Executive of Sandaire, the multi-family investment office.
Arc & Co. are expanding both in personnel and the markets in which they operate. James’s experience in running large banking teams and designing and implementing company structures whilst ensuring the highest quality advice is given to clients will give Arc & Co. the experience and support to execute their growth plans.
Andrew Robinson said: We are delighted to welcome James as our Chairman. Over the last decade Arc & Co. has developed a strong brand and reputation in the advisory market. It is time for Arc & Co. to appoint a Chairman to take us to the next level. As the market competition gets stronger, we are keen to evolve our proposition to make sure we stay at the forefront of the market. James has a vast amount of experience with some of the most important banking brands in the UK. Working with James will allow us to execute our plan whilst making sure we keep the highest advisory standards.
James Fleming said: I am delighted to join Arc & Co. as Chairman. Arc & Co. has a very strong brand in the debt advisory market and is developing some ambitious plans for its next stage of growth. I am excited by the prospect of adding my experience to the senior team and helping them bring their plans to fruition.
Arc & Co. completes £27M development loan with Burrington Estates
Arc & Co. are pleased to announce the completion of a £27.m development loan with Burrington Estates
Deal Highlights:
Lender: Octopus RE
Client: Burrington Estates
Senior Loan: £27,275,000
Security: over 4 office buildings totalling 170,000 sqft
The facility with Octopus RE is to provide a refinance of existing debt and fund the capital expenditure works on four office buildings, totalling 170,000 sq ft on the outskirts of Exeter.
The deal was under tight time constraints, with two of offices having leases agreed and due to start in the new year. Ensuring the funding was in place before the next drawdown was key to meeting the tight deadlines on completing the work. With an existing relationship with Octopus, Arc & Co. were able to secure a competitive solution to ensure funding was provided to meet the client’s overall strategy to deliver two new office buildings on the site.
Cameron Hayes, Asset Finance Advisor at Arc & Co. says, “Octopus and Burrington were both a pleasure to work with. All parties were very cooperative and worked with speed to deliver this on time.“
Matthew Bennett, Commercial Managing Director at Burrington Estates says, “It was the first time working with Arc & Co and they were excellent in helping us deliver this within 8-weeks. We look forward to building the relationship with them as 2021/22 evolves.”
Over the last 18-months, Arc & Co. have been consistent in providing structured financing solutions for our clients. Despite more lenders entering the market on a regular basis, we remain true to providing clear and straightforward advice on funding, with the client’s wider strategy in mind.
If you have an opportunity that you would like to discuss, please get in touch with Cameron Hayes at Arc & Co.
Cameron@arcandco.com
07896709177
ARC & CO. COMPLETE €21M SUPER YACHT LOAN WITH AMBER LION PARTNERS
Arc & Co. cements partnership with Multi-Family office Amber Lion Partners with a €21m Yacht loan completion.
The loan was a refinance and capital raise against a 2013, 72 meter Super Yacht. The loan was written over a six year term at a margin of 2.95% over Euribor. The lender was JP Morgan.
Andrew Robinson Says – “This loan was intricate due to the nationality and complexity of the client. It really demonstrated the added value of our partnership with Amber Lion Partners. Loans of this size and complexity rely on trust in the relationship and working with Amber Lion Partners helped bring all parties together to make the deal happen”
Avy Burstin says – “This is the third completion of large structured financing the partnership between Arc & Co. and Amber Lion partners has produced. With in the last couple of weeks, we have completed 2 complex real estate deals and one Super Yacht deal. It demonstrates the power of our joint value proposition to UHNW families, throughout Europe and Emerging Markets. We expect this partnership to grow and accelerate in momentum in 2022, with the opening of offices in various European locations.”
Arc & Co. launch partnership with London Belgravia Brokers
Arc & Co. have partnered with London Belgravia Brokers to form an integrated advisory for independent advice on real estate finance and build warranties.
Combined, Arc & Co. and London Belgravia Brokers provide advice on over £2bn of development costs per year. This partnership will enable both firm’s client base to benefit from specialist advice needed to support their business in the best possible way.
The first deal was completed with West One Loans. The loan of £2.3m was for a development of 9 units in Wood Green.
Deal Specifics
Key stats:
• Gross loan - £2,295,000
• Interest - 7% + base
• Term – 24 months
Specialist advice was needed as the client has no UK assets, affecting the availability of a personal guarantee which would be enforceable in the event of a default. West One specialist underwriting meant that they could assess the strength within the case based on quality of the asset and the delivery team involved.
Andrew Robinson says “This is the first completion from our new partnership and demonstrates the clear specialist advice needed within the ever demanding development finance sector. This completion was a win-win for both firms and the client as without the funding levels approved, the client would not have been able to purchase the site.”
Giles Fallan says “The base of London Belgravia’s business model is providing honest and dependable advice to our clients and this is mirrored in the foundation of our partnership with Arc & Co. This completion is the epitome of this and clearly demonstrates the real value clients can see, from the bringing together of two specialists in their field can bring.”
How Is Current Market Volatility Affecting The Day One Loan Amount?
Written by Matthew Yassin, Director Structured Finance
As the finance world continues its recovery from the shock of recent worldly events, we continue to analyse the effect this is having on developers and the development facilities available to them.
Fundamentally, a development loan consists of a few key components including:
· Land Loan
· Construction Loan
· Interest charges
· Professional fees and contingency.
What factors can affect these?
1. Timescale
It is currently evident that lenders are extending the term on loans to compress the risk associated in delivery. Although a development has the potential to reach practical completion within a shorter timescale, it is prudent to allow some headroom so the scheme is not under pressure. The obvious effect this has is primarily on the interest portion of the loan. By having a longer proposed term the interest is naturally increased which creates more cost. The underlining concern regarding timescales is directly connected to the disturbance in the market such as; Contractor lead times, material shortages, potential labour shortages which are all supply chain issues. Considering the overall uncertainty, the lender must create some slack in the facility – and by the extending the term, it will give more comfort in delivering on time and not breach the loan covenant.
2. Material Costs
The increasing costs of materials has subsequently increased the build costs and therefore the construction facility amount. Due to risk, lenders like to ensure that the construction facility is 100% funded. Consequently, if the construction cost has increased, the impact is on the day one loan amount which inevitably will be reduced.
3. Contingency
Lenders need to ensure that their loans are viable to deliver the project for the developer. Consequently, by the running the numbers in today’s world they prefer an additional layer of protection for both the developer’s scheme and their loan, which is normally centred on the level of contingency. This is the facility that allows cover for any overruns in cost or timescale and other unidentified costs that may occur throughout the development. What we are seeing is this being increased from 5/7.5% - to a comfortable 10% or more in some cases dependant on the scheme. Again, this portion of the loan needs to be factored into the day one costs and consequently it is having a negative effect on the day one loan amount.
By extending the term on the loan, the rise of material costs and the increased contingency means the residual loan facility is significantly decreased. Below is an example of a £4.5m loan facility:
Previous Current
Facility £4.5m Facility £4.5m
Land loan £500k (50% LTV) Land Loan £0 (LTV)
Contingency £750k (7.5%) Contingency £900k (10%)
Interest Facility £250k Interest Facility £300k
Build Cost Facility £3m Build Cost Facility £3.3m
The direct impact being felt is the reduced land loan as a result of increasing the other elements of the loan. This means that we are increasingly seeing mezzanine and equity finance being required by developers.
With mezzanine and equity finance in higher demand, there has been huge growth within this space. It has become much more common for junior lenders to form part of structuring the debt, supported by positivity in the residential and investment sectors as well as readily available mortgages.
Ultimately day one loans are reduced as a result, but only time will tell if this is a short-term adjustment or if we are entering a new phase in the development world given the events of the past 2 years. It’s fascinating seeing the market adapt to new conditions and we continue to be bullish about the liquidity available throughout the capital stack and new products on the horizon.
The True Cost of Capital
What is the true cost of capital? When looking at development finance, many borrowers focus on the rate of interest that is applied to the loan, however this is only a small fraction of the total cost of capital and there is much more to consider. It is not always the lowest interest multiple that generates the lowest cost and the most suitable loan.
The first and maybe most obvious consideration is gearing. How much leverage is required? The higher the leverage, the higher the risk. The higher the risk, the higher the price. Once you have worked out how much leverage you require to fund the development, you can then start to look at how to structure the loan in ways that maximise your profit and/or minimise your equity, increasing your return on equity (ROE).
Some borrowers require low leverage and low pricing to maximise their profit margin, but this is equity intensive resulting in a low ROE. In real terms, this approach is very expensive as equity is more costly than debt, both in pricing should you need to raise it, but also in opportunity cost should you already have it, limiting the number of developments that you can construct at any one time.
To minimise the equity required you need to look at maximising the day one land advance, which comes with increased leverage and is the amount contributed by the debt facility once all other delivery costs including interest have been funded. It is not always the loan with the cheapest interest that maximises the day one advance. A borrower needs to understand the in and out fees and how they are apportioned to the loan. For instance, if the interest rate is low but the entry fees are high, this is likely to reduce the day one advance. Some lenders will back end the fees meaning that there is more to pay on the exit of the loan. The lender is taking more risk and therefore this might be reflected in the interest rate charged to the debt.
The delivery programme is just as important as often this is where interest is saved, regardless of the rate at which it is charged. Most construction drawdowns are calculated on an S-Curve basis, meaning you are only paying interest on the amount of debt that is drawdown. Simply put, capital that is not being used is not charged upon. The only way to be accurately assess this is to build a realistic cashflow model and likely drawdown profile to properly analyse debt required and the associated interest coupon. Some borrowers will work on a peak debt basis, further still reducing their cost of borrowing by optimising their drawdown profile. This works well when building houses but is very difficult in residential blocks.
In summary, to accurately calculate and compare the true cost of capital you need to measure it as a percentage the total cost of finance by adding together the entry and exit fees, the interest apportioned to the loan and cashflow divided by the gross loan amount. This percentage can then be measured against ROE and it is often surprising that the loans with the lowest interest rate, aren’t always necessarily the cheapest overall cost of capital. The biggest factor that affects how cost effective a borrower’s capital really is, is ultimately down to the performance of the project, construction, sales and time.
Sophie Brown Joins Arc & Co.
Sophie is Arc & Co.’s representative for Southeast Asia, based in Singapore where she provides debt advisory services with a focus on Real Estate.
Sophie is a Chartered Accountant and has significant experience in M&A and debt structuring both in house and an advisor for business ranging from private equity-owned, family-owned and FTSE 250.
Sophie is most proud of ensuring her clients are presented with the optimal deal structure and smooth execution, that is what gives her the most satisfaction.
Andrew Robinson says: “It’s great to be working with Sophie. Her previous experience in M&A and debt structuring will add value to Arc & Co.’s proposition. The Southeast Asian Market has a key influence in the UK and European Real Estate Market across all sectors including residential, commercial, and industrial both for development and investment. As Sophie is based in Singapore, she is well positioned to advise investors from this region with the most up to date market knowledge.”
Sophie Brown says:
“Joining the Arc & Co. team with the experience and reputation within the development and commercial sector across all Real Estate asset classes will add value to our clients in Southeast Asia. I look forward to working with the team and being able to deliver the best possible advice to our clients.”
To connect with Sophie, drop her an email at Sophie@arcandco.com
Welcome to the team Sophie!
Arc & Co Completes £86m development loan
Arc & Co are pleased to announce the completion of an £86m loan facility on a speculative residential development in the Midlands. The funds will be used to acquire the site and repurpose the land from its current tenure.
Our client, who has multiple sites nationwide, was set a strict deadline to complete the purchase and required a high loan to value. They required a lender who would be able to give them the flexibility required to enhance the value through a number of different strategies.
The Loan amount of £86m was provided in an initial drawdown of £76m, equating to an 80% Loan to Value, on a 3 year term. The balance will be drawn upon attaining certain planning permissions.
A US based hedge fund provided the loan facility, with the entire deal taking just 6 weeks from application to drawdown. This was the first deal Arc & Co have transacted with this global investment firm.
Sean Adams said 'This was a complicated funding proposition with many moving parts, but to get from application to completion in just over 6 weeks was quite a feat. This was thanks to a very engaging client and an extremely proactive funder. We look forward to completing further funding transactions for this client'
Arc & Co and Octopus complete £12m loan for major development in Isleworth
Arc & Co. has completed a £12m development loan with ME Developments and Octopus Real Estate in Isleworth, London. The development is directly opposite Isleworth Station and the first major residential development in the area for 2 years.
ME Developments has plans to build over 1,000 houses and apartments with a value of over £400m over the next three years.
Deal Outline:
• Loan size £12m
• GDV of £25m
• Lender Octopus Real Estate (development team)
• Asset Two mixed-use towers comprising 53 apartments and 7,000 sq.ft. of offices
• Type of finance Development facility (loan)
• structural warranty sourced by London Belgravia Brokers
• LTGDV 67%
• LTC 83%
Deal Complexity
A golden brick payment was payable on the affordable housing, which ME Developments has to exchange on prior to completion. The affordable housing sale has been agreed with L&Q. Octopus Real Estate were excellent in adapting when necessary to meet completion deadlines.
Due to the scheme’s healthy profitability, Arc & Co. were able to structure a high loan to cost facility while maintaining a competitive financing cost.
ME Developments has plans to expand across the Home Counties and outskirts of London, benefitting from a buoyant residential property market. This market activity has increased the availability of innovative funding available from institutions and international investors who recognise the opportunity in the UK's residential property sector.
ME Developments have recently appointed an advisory board with HE Shaukat Aziz (Ex Global CEO Of Private Banking Citi Bank And Former Prime Minister Of Pakistan) And Lord Norman Lamont (Former Chancellor Of The Exchequer UK) with Bashir Ahmad, CEO of Halkin Investments, as Non-Executive Chairman of ME Developments.
Cameron Hayes, Asset Finance Advisor at Arc & Co. says, “It was excellent to work with both ME Developments and Octopus Real Estate on completing this loan, which will be the first stage in achieving ME Development’s growth plan.”
Simon Marshall, Founder and CEO at ME Developments says, “It was a pleasure working with Arc & Co. and Octopus Real Estate on this complex transaction, in order to help us achieve our 1,000 homes in 36 months target. Arc & Co.’s best in class financial advice, coupled with the fire power of Octopus Real Estate has been vital to achieving this.”
London Belgravia Brokers (LBB) was introduced to ME Developments by Arc & Co in order to arrange structural warranty cover for the 53 unit scheme in Isleworth, with a total GDV of £25m.
Senior Broker & Head of Desk, Jamie Milne, was able to provide comprehensive and independent insight about the market and the availability of products most suitable for the project. Jamie also navigated through the added layer of complexities and mandates, as stipulated by the housing association.
In addition, London Belgravia secured exclusive payment terms which allowed ME Developments to secure their warranty with just 20% down payment and remaining premium spread over the 10 month build period.
Jamie further commented:“We are delighted to support ME Developments on this new scheme, which will create much needed modern homes in the south east of the country. We have been very impressed by their projects in the past and are pleased to be assisting them in delivering their impressive pipeline of projects”
Arc & Co. completes 4 CBILS loans with Brydg Capital in 1 week
Arc & Co. completed 4 CBILS loans with Brydg Capital, in the last week of the CBILS being available. All offers were signed prior to the May deadline, requiring completion within 90 days. The last of the 4 loans closed on Wednesday 25th August.
The loans which totalled £16m; were secured against both residential and commercial properties. The debt facilities will provide the borrowers with 12-month interest paid by the scheme to help support their Covid impacted businesses.
Edward Horn Smith, Managing Director at Arc & Co. says, “Arc & Co. offer a top to tail service; not only precuring the best possible finance solution available within the market but also seeing this through until completion. Ensuring these loans drew down prior to the cut off was essential to our clients.”
Daniel Bendavid, Director at Brydg Capital says, "At Brydg, we are uniquely positioned to fund real estate backed transactions with speed and assurance because of our experienced team, long-standing broker relationships, and advanced technologies. We worked closely with Arc & Co to support these businesses impacted by Covid through our accreditation with the UK Government-owned British Business Bank.”
Arc & Co. Completes a £6.5m Loan with Century Capital
Arc & Co. have completed a loan with Century Capital on a prime residential asset with a value of £17.5m in London.
The loan, a £6.5m refinance and equity release was the first deal with Amber Lion Partners, an award-winning family office based in Switzerland.
The client is a Syrian national, resident in Monaco with a BVI ownership structure.
The funds will be utilised for capital expenditure on a hotel development located in Vienna, while Arc & Co. re structure the debt for the entire hotel development which has a total Gross Development Value of £150m.
Andrew Robinson, CEO at Arc & Co. says, “I would like to thank all parties involved in completing this deal, with special thanks to Century Capital, who were quickly able to understand the structure and complex nature of the deal resulting in a swift completion during August.”
Paul Mumford says, “We are pleased to have completed another Arc & Co. transaction on a prime property in Central London. The complex and international nature of the deal was particularly appealing and handled very professionally by Arc & Co. We value the relationship and particularly the proactive and responsive approach of Andrew and his team. At Century we have strong appetite for complex and high-end real estate and understand the often time sensitive nature of finance for entrepreneurs and major business figures.”
Arc & Co. Announce partnership with Reading Abbey Rugby Football Club
Arc & Co. are proud to be partnering with Reading Abbey Rugby Football Club to help make the club a better place for members and the wider community.
For every mortgage Arc & Co arrange for an Abbey RFC member or affiliate, Arc & Co. will contribute towards items that will enhance players and members experience. Arc & Co. have run similar schemes across the country with other communities, raising in excess of £45,000 within 2 years.
The partnership will first fund a state-of-the-art VEO camera for use by all teams. The camera will automatically follow players during matches and training which can later be watched back during analysis sessions and coaching. Gareth Briggs, lead sponsor contact at Arc & Co. said “I look forward to being able to help improve the facilities and equipment of the club in due course.
Gareth Briggs from Arc & Co. played at Abbey RFC for 7 years and will be assisting on mortgage enquiries. We recently completed our first transaction for the club and have received the following feedback.
"After switching from their existing broker, the client commented by saying “Arc & Co. customer service was second to none, being updated on an hourly basis with progress as to our application. As a result of Arc & Co. we secured our move and saved £15,000 in stamp duty fees whilst being able to meet the needs of the chain and exchange quickly”.
ARC & CO. COMPLETES A LAND PAYMENT LOAN WITH CATALYST
Arc & Co. have completed a development exit bridge on 3 houses in West London with Catalyst.
The developer had an agreement with the land owner that a land payment would be paid 27 days after practical completion. This was not sufficient amount of time to maximise the sales values of the scheme. Arc & Co. arranged an exit bridge with Catalyst to satisfy the land owner and provide the developer with an appropriate amount of time to sell the properties.
Key Figures:
LTV - 70%
Gross loan - £1,564,815m
Net Loan - £1,411,761m
Interest rate - 0.64%
Term - 12 months
Tom Berry, Asset Finance Advisor at Arc & Co. says: The speed and diligence Catalyst gave towards the case was great. They picked up this case which had a tight turnaround time and were able to complete in a 4 week period. My thanks go to Josh Hawker and James Parnall for ensuring a swift completion whilst securing a competitive bridging product.
Josh Hawker, Relationship Manager at Catalyst Property Finance says: “It’s been an absolute pleasure to work with Arc & Co on this loan. Tom approached us with an enquiry for £1.56m of Development Exit Finance. The client was an extremely successful property developer, but the case presented some complexities and required a speedy turnaround to funding. I have to say, Tom is one of the most hands on brokers we work with, we spoke daily and, working with our amazing Credit Analyst, James Parnall, we were able to provide the client with the required funding within 4 weeks. A great team effort!”
Arc & Co. structures a new debt facility in excess of £100m for the Ability Group
Arc & Co. structured the loan with an affiliate of Lone Star Real Estate Fund VI. Loan Star has provided a new debt facility in excess of £100m to Ability Hotels to support the re-financing of 4 Hilton Hotels:; Hilton Liverpool, Hilton Dunblane Scotland, Hilton London Syon Park, and Luton Hampton by Hilton.
The Ability Group, headed up by Chairman & CEO Andreas Panayiotou, formed in 1996, have built up a significant presence within the UK and European property markets, across the Residentialresidential, Commercial commercial and Hotel hotel sectors. Ability Group have an existing portfolio of 14 hotels in the UK.
For Lone Star, a leading private equity firm, Tthe transaction represents for Lone Star an opportunity new strategy to enter into the lending market for the UK hospitality sector, providing new liquidity to Hhotel owners in order to support their recovery from the pandemic.
Edward Horn-Smith, Managing Director at Arc & Co. commented:
“We have seen a recent wave of liquidity from private equity funds and investment banks, who are well positioned with strong appetite to fund operational commercial assets. These funds are plugging the gap of typical bank lenders who have fallen short of the mark. This is the first of several large commercial loans we expect to execute in Q3 and Q4 this year.”
Arc & Co. advises on £20m facility
Cameron Hayes, Asset Finance Advisor at Arc & Co. has successfully arranged an initial £20m per annum equity facility for Industria Resources.
Industria Resources specialise in the conversion of agricultural and other land into land ready for commercial, residential and solar use. The Group aims to promote and construct individual solar projects, targeting an average of 20-30 sites per year. The GreenVolt Group are a 50% shareholder.
The equity investor, a UK-based family office has formed a new joint venture with Industria Resources and will advance an initial investment of £20m. The investment will be used to take sites through the planning process on promotion/option agreements, as well as funding all OPEX costs associated with expanding the business operation. The partnership aims to establish Industria Resources as one of the leading UK developers for large scale ground mounted solar parks and battery systems.
Udo Eisenmenger, CEO GreenVolt Group and MD of Industria Resources commented:
“We were delighted to get this equity facility in place. Cameron was on top of the deal throughout, from the initial introduction and due diligence to establishing the platform for its growth over the next few years. His dedication ensured everything fell into place and we look forward to working with Arc & Co. as our strategy progresses.”
Cameron Hayes commented:
“Great to see this across the line with Industria. Hopefully this will pave the way for Udo and the team to build out a larger portfolio and unlock more sites for solar energy over the coming years.”
The partnership will aim to provide 1-2GW of renewable energy to the UK market within the first few years of establishing – powering energy to c.250,000 homes and businesses. The investment comes at a key time where the renewable energy market is gaining significant momentum and forms part of the Governments strategy in transitioning away from fossil fuels and towards renewable energy solutions. The equity provider is a specialist in providing alternative credit solutions across Renewables, Real Estate and Fintech.
Tom Stephenson joins Arc & Co.
Arc & Co. has further expanded it’s structured finance team, with the addition of Tom Stephenson as Asset Finance Advisor.
“After spending 9 years in professional rugby, Tom transitioned into the financial industry under the Arc & Co. mentoring programme. He gained vital experience in all areas of Structured Finance and rapidly progressed to become an Asset Finance Advisor. Tom’s highly driven and competitive nature, added in with his ever-growing knowledge makes him a great addition to the commercial and development team.” - Andrew Robinson, CEO at Arc & Co.
“I’m very proud and excited to join Arc & Co. who have a strong reputation in the Commercial and Development market, After a decade in professional sport I found Arc & Co.’s mentoring programme to be very supportive which gave me the confidence to make the change.
In order to be successful in professional sport, it is important to have the right culture and team ethos. Arc & Co. have a fantastic team culture, making it a really positive environment to work in. I am looking forward to learn further and add to the great work which is already going on in the team.” - Tom Stephenson, Asset Finance Advisor at Arc & Co.
To connect with Tom, drop him an email at tom.stephenson@arcandco.com
Welcome to the team Tom!
A broker's trusted track record with a developer can lead to more 'bullish' terms
As part of its weekly virtual roundtable series , Medianett’s managing director, Caron Schreuder, along with West One’s head of development and head of sales for bridging and development, Guy Murray and Michael Grant, led an hour-long conversation around the nuances of deciding which lender and wider team to work with to best ensure a property development’s success.
The panel also included Elise Taylor, finance broker at Aureum Finance; Jason Hoad, CEO at Boutique Capital. and Julian King, asset finance adviser from our Structured Finance Team at Arc & Co.
The full virtual roundtable can be watched here.
Arc & Co. completes on a £2.4m senior development loan to an international borrower to fund 9 residential apartments
Julian King at Arc & Co. has successfully advised on arranging a £2.4m development facility to an international borrower, developing 9 residential apartments with a GDV of £4m in Croydon. Hampshire Trust Bank provided the borrower with a suitable facility, after getting comfortable with the UBO’s borrowing structure. Due to the clients international structure emphasis was put on the source of wealth and in particular how the client generated their wealth previously. When working with international clients, the team at Arc & Co. place an empasis on knowing their client, which is essential to make sure that we as advisors adhere to our regulated status. Strong communication with the whole team at Hampshire Trust Bank, Ronald Fletcher Baker and Arc & Co. ensured we were able to take it through to a swift completion.
The loan provides development finance up to 60% LTGDV to fully fund the construction whilst providing a land advance to support the purchase.
For any further information, please contact:
Julian King
Asset Finance Advisor
E: julian@arcandco.com
T: +44 (0) 20 3205 2190
Arc & Co. completes a €14m loan on behalf of a former F1 World Champion
Another deal completed by Judd Cole and a fantastic way to end the week with a €14m loan, refinancing an existing property in France with equity release for the purchase of an apartment in Monaco.
Deal Summary:
Asset Value 23m euros
Loan amount - €14m
Term 5 years
Interest only
Margin 1.78 over EURIBOR
No AUM
Judd Cole from Arc & Co. says:
Thanks to a solid team effort, excellent communications between all parties and a high-degree of accommodation on behalf of the lender and client, we were able to complete this sophisticated international loan structure within tight time constraints. A win for everyone involved.
Mark Thomas from Balkin Estates says:
I would just like to thank you and the entire team at Arc & Co., especially Judd down here in Monaco who made this amazing transaction happen in organizing the financing for the acquisition of a 350sqm duplex penthouse for a client of mine, a former F1 World Champion.
To say he is “over the moon” to use a footballing term is simply not enough, the client is ecstatic we closed. The financing solutions offered up by Arc & Co. to provide the 14 million euros finance for this deal were both creative and inventive and allowed the client to acquire the property without placing any equity. Ground breaking. Indeed, this can serve as a potential model for further acquisitions with the right client moving forward.
The deal served as an example of a superb exemplary team effort exhibited by Arc & Co. and Balkin Estates working together in dealing with a high profile VIP client and their tailor made requirements was exceptional. I look forward to developing our relationship and finding finance solutions for our future Monaco clients together.
For any further information, please contact:
Judd Cole
Asset Finance Advisor
E: judd@arcandco.com
T: +44 (0) 203 971 2512 (UK)
M: +33 (0) 62986 3609 (France)