Specialist debt and equity advisory firm Arc & Co. has assisted a developer with a bridging facility to secure two conversion properties.
The site in question comprises a farmhouse with planning to convert two barns into four-bedroom homes.
Initially, the borrower—who is experienced and has several similar conversions under their belt—had development funding lined up. However, upon receipt of the valuation, which came in under what was expected, the lender pulled their offer.
We are pleased to announce that Arc & Co. won the title of Short-term Finance Broker of the Year at the most recent NACFB Broker Awards. Philip Kay and Vishal Dixit (shown) attended the awards on September 13th, which recognise excellence within the UK intermediary market
The Short-term Finance Broker of the Year award itself seeks to recognize NACFB Member firms that have excelled in sourcing agile and effective short-term funding solutions.
Specialist capital advisory Arc & Co. has completed a commercial bridging transaction with property lender MT Finance, to support a client with additional funds.
Through a new funding arrangement, Nikita Nigai, Head of International Clients at Arc & Co., increased the original loan with MT Finance, extended the term, and released some equity for renovation works.
Working together for the second time, Vishal Dixit, senior broker at Arc & Co., has secured funding for a seasoned investor client to acquire a small portfolio of below-market value properties.
The borrower required £1.125m as a bridging loan to purchase the asset, which he intends to refinance onto longer term debt once works have been completed to increase the value.
Tuscan Capital, the short-term property finance specialist, has today (31st July 2024) announced the funding of a £6.7 million deal for five luxury, multi-unit residential properties in Cheshire.
This transaction, introduced by Arc & Co, was completed at 75% LTV and Tuscan said it underscores its expertise in high-leverage funding.
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.
