Arc & Co. partners with Delancey on £15.7m office acquisition loan

Specialist capital advisory Arc & Co. has secured a £15.7m acquisition loan to fund the purchase of an office in Farringdon, London.

The 24-month facility is provided by Delancey Real Estate, who were flexible in their approach to this higher leverage requirement. Farringdon is a strong office location currently undergoing wider regeneration which supports underlying rental demand.

Philip Kay, director at Arc & Co., commented: “The client managed to secure the acquisition of the office building at a very favourable entry level, which enabled flexible structuring with Delancey.

“We are pleased to have concluded on yet another successful office transaction, with a client whose investment strategy is targeted at strong London locations with an end goal of repositioning commercial assets to best-in-class.

“Understanding their business plan and Delancey’s positive appetite for this sort of project meant that we were able to secure an ideal outcome in what remains a challenging environment.”

Commenting on the announcement, Martin Kom, Director of Real Estate Strategies at Delancey, said: "We continue to have high conviction in central London offices, as demonstrated by our recent financing activity and remain relationship-led in our approach, so are pleased to be working with a high-quality sponsor like ZCS 2. The polarisation taking place within the office market is causing many lenders to withdraw entirely, creating an opening for us to step in. However, we see the shift towards private debt being structural and not purely cyclical, and real estate credit as a whole, will be a longer-term strategy for us.”

Farid Alizadeh from ZCS added, “Farringdon provides another opportunity to add to our growing portfolio of central London offices. We value our ongoing relationship with Delancey and trust their expertise in structuring deals that support our ambitious growth plans of acquiring £500m of central London offices within the next 24 months. It is a real joy to work with a lender who also has a sophisticated background in understanding the dynamics of investing in central London. Delancey as always were quick, honourable and a pleasure to work with.”

Broadwood Capital and Arc & Co arrange £7.5M care sector loan

Broadwood Capital, alternative lender to real estate investors and developers in the UK, has completed a £7.3mn loan arranged and structured by specialist capital advisor Arc & Co.

The three-year funding package to The Stepping Stone Group was split into two loans and secured by an existing operating care home and adjoining site with consent to deliver retirement living units in Nynehead, Somerset.

Nynehead Court is a one of the longest standing care homes in the UK and provides 42 beds in a magnificent Grade II listed building set in 13 acres of tended parkland and gardens. The adjoining Nynehead Court Farm site has full planning consent to initially deliver 6 retirement living units and potential to extend this to further units at a later date.

With an average LTV of 72.5%, an initial loan was used to repay three existing lenders, with a second facility available to fund the construction of the retirement living units when development commences at the end of the summer.

Andrew Robinson, Arc & Co. CEO and lead advisor on the case, commented: “This was a complex transaction, involving three outgoing lenders and an asset class which is widely accepted as difficult to secure funding for at present.  We worked closely with the client and Dan at Broadwood to find a solution which maximised the strong cashflows from Nynehead Cout Care Home to provide the required leverage to develop out the Court Farm site, all whilst managing the outgoing lenders’ position and expectations. Broadwood are specialists in the care sector, and that understanding of the asset class meant that we could come together to find a solution that resulted in best outcomes for all parties.”

Dan Smith, CEO of Broadwood Capital commented: “The Later Living sector remains a key focus for Broadwood Capital. The aging demographic in the UK continues to create huge pressures on a sector which is undersupplied. Broadwood is seeking to support developers, investors and operators through our depth of understanding, experience and creative and solutions oriented approach to loan structuring.”

Dan continued, “We are looking forward to working with John Bailey and his team at The Stepping Stone Group and supporting their plans to improve and expand Nynehead Court Care Home and develop out later living units on the Court Farm site, delivering essential care beds and retirement living units.”

John Bailey, founder and owner of The Stepping Stone Group commented: “we were delighted with the advice and solution provided by Arc. & Co and the funding package delivered by Broadwood Capital. This was a long and complex process given the nature of the underlying property and the parties involved. Dan’s creativity, understanding of the care sector and experience in development, along with his patience, was key to unlocking the financing required for us to take Nynehead Court Care Home and Court Farm to the next stage of their development.

Arc & Co. completes £1.15m sustainable investment loan

Arc & Co. advisor Sam Beaumont arranged the five-year facility with a Handelsbanken, secured against a nine-bedroom multi-unit freehold block.

£1m of the first charge loan was used to refinance the existing debt, and £150k was released as equity for cashflow purposes.

EPCs for all the properties were highly rated, making the loan eligible for Handelsbanken’s Sustainable Loan discount.

There was a tight timescale due to an external deadline and despite a few last minute challenges with respect to the property, Sam acted quickly, mediating effectively between the client and the bank.

Sam commented:  

“It was a pleasure working with Handelsbanken to secure this loan for the client, a family trust with a large BTL portfolio. 

“Due to the complexity of the trust structure, we had to carefully structure a deal which worked for the borrower. Philip [Hodgson] and the team were very understanding and flexible, allowing us to get there in the end. 

“Additionally, it’s great to see lenders like Handelsbanken supporting eco-conscious borrowers through incentivised loan criteria.”

Arc & Co. continues to grow advisory team with appointment of Laura Jane McCauley

Its second hire in as many weeks, specialist capital advisory firm Arc & Co. has appointed Laura Jane McCauley to its team of advisors. 

Laura spent five and a half years in private banking at top Swiss bank Julius Baer, occupying several client-facing roles, including credit and complex structuring.  

She has also worked as a broker at a Mayfair firm, where she structured and arranged development, mezzanine and bridging finance.  

Laura commented:  

“I’m very excited and proud to be joining Arc & Co., a firm I have held in high esteem since my initial start in property finance.  

“Its reputation of successful complex deal completions, as well as impeccable attention to client service, mirrors my own strengths and values, and I look forward to bringing my breadth of experience across property finance, private banking and luxury assets to the team.” 

Laura has grown her network through a variety of industry events and will be applying this approach to further enrich Arc & Co.’s deep client and lender relationships.

She has a particular interest in eco-friendly and sustainable property projects and looks forward to continuing to raise awareness and generate business in this part of the sector.

With Laura, the Arc & Co. advisor team now stands at 16.

Andrew Robinson, CEO, commented: “Our team is growing, and it’s important to us to do this in a way that represents how we see the market evolving.

“Laura’s experience in family office and wealth management is integral to supporting the wide range of client requirements we have.

“In addition, her enthusiasm and attitude to business development are attributes we know will add huge value to the team and our ongoing success.”

Arc & Co. and Together partner on £4.9m of lending to developer client

The funding package comprises a bridging loan for the acquisition of a prestigious property in central Manchester, and a development loan to finance its renovation

Working together for the first time, specialist debt advisory firm Arc & Co. and property lender Together have completed on two loans, supporting a developer with a £1.5m bridge and £3.4m development facility.

The central Manchester property is made up of commercial space as well as basement accommodation, and the funds will be used for its purchase and renovation over the next 24 months.

The client intends to convert the building—which already has planning in place for change of use—into modern, high-quality serviced office space,

Cameron Hayes, Director at Arc & Co., commented:

“We’re pleased to have advised on and completed the funding for this office development, for a client who is actively looking to grow in the best-in-class commercial space.

“We look forward to working them on their continued journey to deliver quality serviced office space in key cities like Manchester.

“It was our first transaction with Together, and we’re very happy with the outcome. Their team have been fantastic to work with, and we hope to build a long and fruitful relationship for the future.”

Marc Goldberg, CEO sales and distribution at Together, said:

“This area is a real gem of central Manchester, and we are delighted to be able to help the borrower with this acquisition.

“Working alongside Arc & Co., we have been able to navigate a financial plan that works best for all parties involved. They have been brilliant throughout, and we hope to continue working with them in the future on more exciting projects.”

Arc & Co. grows advisory team with appointment of Andrey Redman

Andrey Redman joins the specialist capital advisory firm as a Director

Andrey has over 15 years’ experience specialising in capital advisory and finance raising—both debt and equity—and has spent the last several years focussed on real estate.

He has a background in economics and management, and has occupied significant roles at Wimmer Family Office, Knight Frank, and PwC including Debt and Capital Advisory and M&A.

Andrey commented: “The full lifecycle of real estate projects from land acquisition to stabilisation—including situations of financial distress in various asset classes—is very familiar territory for me, and I am excited to be a part of a team that is well known for its end-to-end approach.

“I look forward to my track record in executing complex projects, structuring deals, formulating business strategies and leading teams to deliver on business objectives bringing a wealth of value to Arc & Co’s clients.”

Andrey will use his network and knowledge of the sector to create and nurture relationships and opportunities between equity investors, lenders, and clients, building on the extensive group of funding partners the firm has close access to.

Andrew Robinson, CEO at Arc & Co., stated: “In line with our growth plans and commitment to expanding our team with seasoned professionals who understand our markets, we are delighted to welcome Andrey on board.

“His experience covers a broad range of geographies and asset classes, demonstrating his adaptability and global perspective.

“Andrey’s appointment supports our objective to be at the forefront of advice within the debt and equity markets, delivered by a team of dedicated, best-in-class experts.”

Arc & Co. and Alternative Bridging Corporation arrange two loans in just 10 days

Specialist debt advisory firm Arc & Co. has completed two short-term loans for a borrower seeking to release capital and complete a commercial-to-residential conversion.

Sam Beaumont, advisor at Arc & Co., dealt swiftly with Alternative Bridging Corporation—the lender which funded both loans—to get the transaction over the line.

An Alternative Overdraft facility of £245k was secured against an unencumbered residential property for 24 months, providing the borrower access to multiple drawdowns on demand which can be repaid or redrawn repeatedly.

A 12-month refurbishment loan of £560k was used to finance the acquisition and conversion of a clinic into a three-bedroom house.

Sam commented: “It was imperative that the transaction completed quickly, and it was refreshing to work with a lender who leapt into action.

“The funding package we structured met the needs of the client, and I am confident that we have put together a solution that demonstrates the power of understanding lender appetite and pragmatism.”

Taylor Osunsedo, BDM at Alternative Bridging Corporation, said: “I instantly understood the urgency of the situation and the team and I were quick to get the ball rolling to meet the client’s deadlines.

“I find it rewarding to see that we enabled the client to proceed with their project without any further unnecessary delays.

“I'd like to extend my appreciation to Sam, and everyone involved, for supporting us to complete both loans in just 10 days total. This case was our first together and I look forward to building on the relationship.”

Arc & Co. arranges £1m regulated mortgage for developer

Specialist real estate advisory firm Arc & Co. has arranged a £1m mortgage for a property developer client, secured against the borrower’s main residence.

A proportion of the 72% LTV loan was used to repay existing debt, and the rest released as equity to invest into development projects.

The mortgage is for a term of five years at a fixed rate of 5.24%.

Gareth Briggs, Head of Residential UK at Arc & Co., navigated a complex income structure with the lender to get this deal over the line.

“As with many developer clients, income can appear ‘lumpy’. The lender was able to take a commercial view on this and used the latest year’s net profit from the borrower’s company accounts, even though they hadn’t drawn this income, to satisfy affordability.

“We’re pleased to be able to access attractive lending terms for a wide variety of client profiles, including property developers.”

Arc & Co. named three-time Development Finance Broker of the Year

Arc & Co. has been named Development Finance Broker of the Year for the third year running in the Business Moneyfacts Awards 2024.

The announcement was made on 18th April at the awards ceremony held at Evolution in Battersea Park, London.

The Arc & Co. team were also recognised in the category of Commercial Finance Broker of the Year as runner-up.

Business Moneyfacts relies on detailed written submissions, extensive industry testimonials and a judging panel when determining the award winners.

Commenting on the achievement, Arc & Co. CEO Andrew Robinson said:

“We’re extremely proud to have triumphed in a category with such strong contenders.

“It has been a testing time in the development funding space, and our team has dedicated themselves to deepening their knowledge and relationships, resulting in the standard of client outcomes that we’ve become known for.

“Providing advice in the development debt space is all about understanding the sector, its components, and borrower challenges through every cycle; we remain comfortable with these complexities and look forward to serving the market over the next 12 months.”

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. ARRANGES BRIDGING LOAN WITH NOVELLUS FOR SCHEME-ENABLING WORKS

Real estate finance advisory firm Arc & Co. has arranged a £2.4 million bridging facility with Novellus to fund the construction of a scheme-enabling access road on a site in Devon, allocated for industrial use.

Arc & Co. secured the facility from Novellus, the specialist bridging lender, reflecting a loan-to-value of 50%, at pricing of 1% per month. The term length is 12 months.

The site, which has outline planning permission in place for the development of several light industrial warehouses, is currently without permanent road access. Under the terms of sales agreements for the individual plots, the road must be completed to base course level.

Dieter Kerschbaumer, asset finance advisor at Arc & Co., said: “The detail involved in this bridge facility made it anything but simple, but we were confident in recommending Novellus’ lending solution that will help unlock the development’s significant value.

“Novellus offered a bespoke solution to our client, underscoring the importance of leveraging a diverse pool of lenders and structuring the funding to meet our borrower’s needs.”

Adam Forman, Head of UK Bridging at Novellus said: “With Novellus being 100% privately funded, we were uniquely positioned to offer the borrower reliability and certainty of capital, in a precarious funding market.  Novellus are delighted to have worked alongside Arc & Co. on this transaction, providing the borrower with funds to carry out the essential infrastructure works to the site.”

The Arc & Co. Group is a specialist real estate 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.

Novellus is an independent, privately funded lender with offices in London and Dublin, offering bridging and term loans with no upper limit and secured across a wide range of property assets - including land (with or without planning), commercial, industrial and/or residential.