Arc & Co. secures £1.55m loan for landlord’s expansion plan

Cameron Hayes, Director at Arc & Co., has secured a £1,550,000 bridging loan for a mixed-use office building in the Southeast.

The transaction was completed with a private landlord looking to enhance returns across their portfolio. The 67.5% LTV facility is for 12 months and is competitively priced on a fixed rate.

The bridging loan is being utilised as an equity release to purchase a new industrial scheme, with planning being sought to convert the office into residential student lets. 

Cameron commented:

“The process went very smoothly, completing in just three weeks from legals. Our relationships with private family offices enables us to access capital quickly–which was important to the client in this case.”

Arc & Co. actively searches for the most advantageous debt and equity solutions by leveraging its extensive network of lenders. Our ability to engage with finance providers that are prompt and flexible, as well as competitive in relation to current market demands, continues to provide substantial benefits to our clients.

Arc & Co. secures £25.3m from Coutts for Ability Hotels

Specialist capital advisory firm Arc & Co. has recently closed a £25.3m facility to refinance the Edinburgh Airport Hampton by Hilton Hotel.

Following instruction from The Ability Group, Arc & Co. undertook a full and thorough tender process to source the best available funding for the client. After multiple offers, Coutts emerged as the partner of choice.

The existing junior and senior debt were refinanced onto a five-year loan of £23.5m, significantly reducing the overall cost of debt for the borrower.

The 240-bed hotel has been trading very well—the hotel being located closest to the Airport terminal.

Arc & Co. Managing Director Edward Horn-Smith commented:

“Edinburgh is a great market for this hotel product and The Ability Group is an expert in the hospitality sector.

“Coutts displayed an excellent understanding of this asset class and recognised the strength of the sponsor, operator, and location.

“In addition, they were competitive on price, able to move quickly and great communicators throughout the process.”

Anthony Nutkins, Director at Coutts, commented:

“We’re delighted to have supported our client in refinancing their Edinburgh Airport Hotel, unlocking future potential in line with the growth of Edinburgh Airport and the thriving Scottish hospitality sector.

“This deal underscores our commitment to providing tailored financial solutions for high-net-worth clients, ensuring businesses have the flexibility they need to succeed. We look forward to helping our client continue building on this success.”

Arc & Co. secures £453k development loan at 9% pa

Dieter Kerschbaumer, Asset Finance Advisor at specialist capital advisory firm Arc & Co., has secured a £453,494 development loan for a client building a ground-up single dwelling.

The 47% LTGDV facility is for 12 months and is competitively priced at a fixed 9% p.a. 

The transaction—introduced by London Belgravia Brokers—was completed with a privately backed lender that has deep roots in providing development lending.

Dieter commented:

“With the provision of funding being aided by the lender's in-house legal team, everything progressed efficiently. The upfront costs were kept to a minimum, with the loan facility including valuation, legal, and QS fees.

“Although development activity is picking up, borrowers still need to keep costs as low as possible to maximise profits. Working with a lender who is accommodating in this respect is really valuable.”

Arc & Co. consistently seeks out the most favourable debt and equity solutions via its extensive network of lenders. Our ability to access finance providers which are fast and flexible, as well as competitive in line with current requirements, continues to be a huge benefit to our clients.

Arc & Co. completes £637k bridging loan at 0.55%

Sam Beaumont, Advisor at Arc & Co., has secured a property developer client with a £637,000 bridging loan.

The bridging loan is being used to repay the existing loan on the property, located in Acton in London, while the borrower anticipates planning permission for its development to be granted.

Because the borrower only needs the bridging loan for a short period, a stepped rate option is the most suitable solution. At the required 70% LTV, the loan is priced at 0.55% for the first six months, and 1.15% for the remaining six months.

Sam commented:

“It was a pleasure working with our client to secure this loan, especially considering that the planning process in the UK can be slow and protracted, meaning developers can sit on sites for ages waiting for permission for development or conversion to be granted. Hence the bridging finance required in this case.

“In this case, the lender took a helpfully pragmatic approach , meaning things got done quickly and the process was straight forward.”

As the current market continues to stabilise, Arc & Co. continues to access competitive refinancing options for clients seeking access a better interest rate or release equity to fund their next property project.

Arc & Co. closes £5.6m in short-term funding for two developer clients

Specialist debt and equity firm Arc & Co. has secured two £2.8m loans for separate developer clients who needed to release equity and repay their existing debt provider, respectively.

For the first borrower, Arc & Co. Director Tom Berry arranged a £2.8m development exit facility—secured against a recently completed scheme of eight houses in the Midlands—to raise the equity required for them to take advantage of other opportunities.

Rather than wait for the sales from the completed project to come through, a short-term, development exit loan advances the necessary funds for the developer to move forward with other sites.

The 75% LTV, 12-month loan was secured at 0.89% pcm.

The second borrower had overrun on their build programme, which in turn meant that they had also exceeded their development finance term. The existing lender needed to be repaid, and a new facility put in place to allow the developer to complete the project, with time to sell.

Tom obtained a competitively priced finish and exit loan of £2,8m secured against the North London scheme—comprised of nine residential units—at 75% LTV and pricing of 0.99% pcm.

Both loans were completed in eight weeks each.

Tom commented:

“We’re proud to have a varied network of providers, among which there are very few that can provide what is essentially a development exit loan in advance of practical completion. For the second deal, this was the ideal solution for the borrower.

“Developer exit funding is a great tool to give developers a competitive edge, by advancing the capital necessary to acquire new sites or progress existing ones—especially in what is still a recovering sales market.

“For projects that need a bit more time and need the existing (often expensive) debt refinancing while they complete, finish and exit has been a valuable product.”  

Arc & Co. helps developer secure site with £1m bridging loan

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.

Arc & Co. advisor Dieter Kerschbaumer took the lead on this case, which was introduced by Henry Simpson at London Belgravia Brokers.

Dieter set about arranging a bridging facility to secure the site with a lender that could act fast, could support the leverage needed, and had competitive terms.

The £1m facility at 70% LTV is secured against two assets: the £950k farmhouse being acquired, and another partially completed, unencumbered converted barn worth £650k.

The 12-month loan was priced at 0.84% and provided the developer with 100% of the purchase funds as well as working capital to finish the part-complete site.

Dieter commented:

“It is important to have access to a network of lenders who can kick into action when other providers can’t. It is not uncommon for valuations to trigger a re-evaluation of lending appetite, but, in this case, the change of decision put the developer in danger of losing the site altogether—and potentially making way for it to become available to a competing purchasers.

“Bridging remains an exceptional tool for those who need to get funding fast. The borrower’s existing assets, track record and uplift plans made this a great opportunity for the right lender, and we’re delighted to have facilitated this deal.”

Arc & Co. wins Short-term Finance Broker of the Year at NACFB Broker Awards 2024

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.

Vishal Dixit stated it was an honour to collect the award on behalf of the team at Arc & Co., with the award itself being “A great testament to our business, winning in what was a heavily contested category, up against some great advisory firms.”

For many of our customers throughout this time, bridging has been an essential tool, and it makes up a significant portion of our book. Because of this, everyone at Arc & Co. is honoured to have been acknowledged for our continuous efforts into 2024 by the NACFB and its separate judges.

CEO Andrew Robinson commented “We are very proud to win this award, it has been a tough market the industry and short-term finance has been at the heart of our advice strategy, so to win this award in the current market is very satisfying. Congratulations to the Arc & Co. Team and NACFB for recognising our work.”

We would like to express our gratitude to all of the lenders that we have collaborated with closely throughout this time, as well as acknowledging the growing competitiveness and intuitiveness of the current financing environment.

Going forward, Arc & Co. wants to maintain its reputation as a leader in broker quality while seeking excellence in a constantly changing financial landscape and cultivating stronger ties with our lenders.

Arc & Co. secures £5m sales bridge for 70-apartment development

Cameron Hayes, Director at Arc & Co., has supported a property developer client with a £5m bridging loan.

The scheme comprises 70 apartments, with two thirds sold off-plan.

The 70% LTV facility is for 12 months and will provide the developer with time to sell through the remaining units.

The fact that the developer had successfully exchanged on the majority of the units meant that the lender was comfortable advancing the short-term finance.

Cameron commented:

“Sales and marketing bridges are still a popular funding requirement for developers as the market continues to stabilise.

“Apartments can be tricky to get funding for, and this scheme had the added complexity of ground-floor commercial space that was unfinished and unlet. The lender took a pragmatic view of the deal and the borrower—who had successfully demonstrated his ability to sell the units—and structured their facility to allow for a release of equity on each sale, as well as a competitive margin over base.”

Arc & Co. continues to identify the most competitive short- and long-term financing solutions for clients.

Arc & Co. adds 30 years’ experience to the team with latest hires

Specialist, multi award-winning capital advisory firm Arc & Co has appointed two new Asset Finance Advisors.

Angeline McGeary and Corey Dennis have both joined the growing group of debt and equity experts that make up the Arc & Co. team.

With a strong asset finance and real estate debt advisory background, Angeline brings over 20 years’ experience to Arc & Co. She has successfully guided clients through complex market environments, leveraging her deep expertise to structure funding solutions across various sectors.

Angeline began her career as an IFA, building a strong understanding of financial planning before realising her passion for real estate and moving into asset finance as a broker. Over the years, she has cultivated a reputation for delivering tailored solutions that meet the unique needs of each client.

Corey joins the business after a decade at private bank Handelsbanken, where he gained a wealth of experience working with large corporate clients, HNWs and property companies.

His thorough understanding of the real estate finance market and banking sector, with a specific focus on capital raising, debt restructuring and managing portfolios, makes Corey an excellent fit for his new role at Arc & Co.

Angeline commented:

“I am excited to be joining the team at Arc & Co, known for its commitment to excellence and innovative approach to the industry.

“I am passionate about providing outstanding client service and I very much look forward to contributing to the team by offering customised, competitive solutions for our clients.”

Corey commented:

“Arc & Co’s values and client-centric focus very much align with my own. I am extremely excited to join them in their next phase of growth, where I can develop my skills further and contribute to the team’s success.”

Arc & Co. has hired four new advisors in 2024 so far, as part of a strategy to increase its capacity to service all debt and equity requirements, in all client circumstances. Currently, the team consists of individuals from lending, valuation, quantity surveying, private banking, and family office backgrounds, providing a well-rounded and formidable level of expertise and comfort that Arc & Co. is the broker partner of choice.

Andrew Robinson, CEO, commented:

“We are committed to bolstering our collective skill set with the right people, and welcome Angeline and Corey to the team.

“I look forward to their valuable contribution not only to our scope and growth, but to our daily knowledge sharing discussions. This collaboration is the backbone of Arc & Co. and what helps us set and maintain such a high standard of service.”

Arc & Co. and Close Brothers Property Finance complete £10m development loan

Specialist capital advisory Arc & Co. has secured a £10m development facility for 96 student units in the Southeast.

The funding, provided by Close Brothers Property Finance, is to support a developer with a strong student pipeline and experience in the living sectors.

The 60% LTGDV facility is for 18 months and is priced at a 5% margin.

Close Brothers Property Finance stepped in where another lender was no longer able to advance the funding, working quickly to get the deal over the line. Time was very much of the essence as the developer’s window of delivery needed to align with the 2025 student intake.

Generally speaking, appetite for lending on student schemes can be challenging; delivery timescales, yield assumptions on exit, and operational party concerns make this a specialist asset class, requiring expert involvement from the financial team.  

Cameron Hayes, Director at Arc & Co. who arranged the funding, commented:

“Close Brothers were excellent bringing the financing together in good time. They were able to rely on the reporting by the existing valuer and PMS, and were happy to instruct solicitors pre-credit, to get the funding completed on time.”

Lee Daniel, Business Development Director at Close Brothers Property Finance, said:

“Cameron provided a detailed overview of the client’s proposal and valuable input throughout, to ensure this transaction completed within six weeks of Credit approval.”

Arc & Co. is experiencing an increased level of ground-up development funding enquiries, as market conditions continue to stabilise and developers re-commit to building.

Arc & Co. navigates complex legal process to secure £910k developer exit bridge

Sam Beaumont, advisor at Arc & Co., has completed a £910,000 development exit loan secured on a newly refurbished property in Notting Hill.

The facility is at 70% LTV for 12 months, with interest retained at 0.79% pcm. The transaction was completed in less than two months.

Due to the borrowers currently being based in Sri Lanka and Australia, respectively, legal undertakings were complex and a signing process involving witnesses on video was required in order to satisfy the lender’s requirements.

The client, who has multiple business interests and a small property portfolio, was seeking to release equity for cashflow purposes. Their incumbent bank would not facilitate the release of equity from assets, which led Sam to explore a flexible solution via a specialist property lender.

Sam commented:

“The client has a prolific venture capital business, and operations across the UK, Sri Lanka and Australia. The fact that they were abroad during the process meant that we needed to expertly handle the legal aspects which were myriad and complex.

“It is in these sorts of circumstances that it helps immensely to work with counterparties that understand the nature of bridging and the need for speed, in spite of the hurdles.”

Arc & Co. secures £840k bridging loan for hotel client

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.

The 12-month facility was at 60% LTV.

Due to a lack of available transactional data, the hotel – based in Newquay – was subject to a down valuation during the course of the application, which added a level of complexity.

Nikita and the client managed to appeal the valuation, using nearby hotels to make their case, and got it as close to the original figure as possible.

Nikita commented:

“MT Finance were extremely helpful, supporting the client’s position on the asset’s value.

“Fortunately, the client and I acted as a team to provide the necessary evidence, improve the value as much as we could, and achieve a favourable outcome for the borrower.”

Arc & Co. supports existing client with £9.2m office loan

Specialist capital advisory firm Arc & Co. has completed a £9.3m funding package for a returning investor client.

The funding comprises a £7m acquisition bridge, provided by specialist lender Octane Capital, and a £2.3m VAT loan from Adsum.

The borrower, an experienced investor with a strong business strategy, is using the bridging loan to purchase an office asset in SW London at 65% LTV.

The client intends to obtain permission for change of use.  

Octane Capital funded the 18-month bridging loan at 4.56% over base (no floor) and, together with Edward Horn Smith, Managing Director at Arc & Co., completed the transaction in just four weeks.

Edward also secured a VAT loan from Adsum to cover the borrower’s VAT requirements in connection with the purchase.

Edward commented:

“It was a pleasure working with two lenders who acted so quickly and seamlessly to execute a fantastic outcome for our client.

“Octane continues to be a lender which prioritises communication and delivers solutions, which is paramount for us to be able to rely on. To complete in just four weeks is testament to excellent teamwork on all sides.

“The deal underscores the fact that office is a sector that is hugely important for us; the demand for funding to acquire, uplift, and asset manage will undoubtedly remain strong for the next 12-18 months.”

The deal was worked on at Octane Capital by Senior BDM Shrena Patel and Head of Structured Finance Alex Tyrwhitt.

Alex commented:

“Another great opportunity to work with Ed Horn-Smith at Arc & Co. on this £7m urgent bridge on a fantastic commercial acquisition—underwritten and paid out in under a month.

“Huge thanks to Ed for all his efforts throughout the process and for keeping all parties focused. Big thanks also to Seray Kitchingham, Daniel Baker and all the team at Weightmans for their usual diligence and efficiency, and to Patrick Kearon from Colliers for a quick turnaround and great responsiveness throughout.”

Arc & Co. closes €10m loan on new-build yacht

Judd Cole, Arc & Co. Director in Southern Europe, has completed an equity release transaction of €10m, secured against a 34-meter new-build motor yacht.

The 48-month facility, provided by German bank AKF with no AUM required, will enable the European borrower to release funds for investment purposes.

Judd commented:

“One of the big challenges with this case was registering in a jurisdiction that would make the yacht eligible for financing. 

“AKF were highly efficient and flexible in assisting with this aspect, and once everything was in place, they were able to move forward quite quickly in providing the loan”

Arc & Co. arranges £1.1m BMV acquisition bridge

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.

The loan – provided by Ultimate Finance– represented 75% LTV and 95% of purchase price.

“The seller was offloading assets, providing an excellent opportunity for my client to get a great deal to add to his already significant portfolio.

“Bridging remains an excellent tool for scenarios in which the buyer has to act quickly and obtain maximum leverage.” – Vishal commented

Arc & Co. and Tuscan Capital complete funding of £6.7 million high-leverage deal for luxury properties in Cheshire

Arc & Co. introduced the £6.7 million transaction for five luxury, multi-unit residential properties in Cheshire.

This transaction was completed at 75% LTV by specialist property lender Tuscan, known for its expertise in high-leverage funding.

The purpose of the loan was to repay the existing lender and raise finance to complete another scheme within the developer’s portfolio. Some of the properties were funded pre-practical completion, with multiple exchanges and offers already secured.

The client, an experienced developer active in the region since 2010, faced delays due to supply chain issues and rising material and other costs over the past two years.

Tuscan’s flexible approach enabled the developer to refinance the existing lender and gain time to sell the units, providing a tailored financial solution.

Cameron Hayes, Director at Arc & Co. said:

“Despite a recovering sales market and the relative stabilisation of the issues which have plagued developers for the last few years, there remain clients who need to refinance or consolidate their debt on projects or portfolios that have been impacted.

“It's vital to have the support of commercially minded lenders like Tuscan, who are willing to provide higher leverage to borrowers that require it.

“We are there for our clients throughout the various market cycles, and Tuscan have proven to be a funding partner who aligns with that commitment."

Stephen Palfreeman, Associate Director at Tuscan Capital, commented:

“When receiving a deal involving multiple properties before practical completion, it is vital to get a good background and information flow of what the situation is. Arc & Co always put together a detailed and thorough submission when sending in their deals, and this one in particular allowed us to shape our view of the deal at an early stage. We specialise in high leverage solutions for developers, and offering 75% LTV (not being restricted to 90/180-day figures) allowed the client to refinance the existing lender and give time to sell the units. We have worked with the Arc & Co team for a number of years and look forward to completing more deals over the next few months together.”

Colin Sanders, CEO at Tuscan Capital, added:

“Our product range has allowed us to compete across a broad range of deals this year. Our development exit proposition has been used to particularly good effect with many developers needing to recalibrate their funding structure. By refinancing senior development debt and investor’s equity or Mezz, our development exit bridge provides the time required for developers to maximise the sales of the finished product without being penalised by an overdue capital stack. This deal is a perfect example, which given the quality of the finish and its location has already proved to be in high demand and is likely to sell well above valuation.”

Arc & Co. completes £4.8m JV funding package

Arc & Co. director Cameron Hayes has arranged two loans totalling £4.8m to support a property developer in Hampshire with a project of five detached houses.

The senior development facility of £3.7m is being funded by a challenger bank and is paired with £1.1m in capital from a JV equity partner.

Pricing on the 65% LTGDV senior loan is 4.5% + BBR. The equity portion was charged at 7% priority return and a simple profit share in favour of the sponsor.

The equity partner provided 100% of the net LTV, fully funding the construction costs, land purchase, and covered all the client’s associated costs, including legal and valuation fees upon completion.

This transaction is the first in a series of strategic joint ventures between the two parties, targeting small housing sites throughout the UK.

The client has a good track record of pre-sales, having sold similar sites before practical completion on each occasion.

Cameron commented:

“The JV partner is extremely well capitalised, focusing on working with experienced developers on residential sites.

“We are pleased to expand the client’s funding relations and establish the partnership between both businesses.

“For many developers, equity remains constrained, so it’s vital to work with an advisor that has the necessary relationships at all levels of the funding stack to get deals over the line.”

Arc & Co. completes £5.8m serviced office investment loan

Arc & Co. has secured a £5.8m investment facility to support a repeat borrower in refinancing their existing debt—the most recent in a series of office transactions completed by the specialist capital advisory firm

The asset is a serviced office located in Devon, set in 70 acres of land and comprising 14 buildings and 150,000 sqft of income producing space.

The client needed to refinance their existing facility and move from a variable to a fixed rate to improve cashflow.

Cameron Hayes, director at Arc & Co., partnered with a private bank to obtain 55% LTV and fixed pricing of 6.65% for the full five-year term.

Despite the lack of long-term leases in place, the volume of and overall diversity of tenants meant that Arc & Co. was able to provide sufficient comfort to the lender. Relying on private banks who display this sort of commercial approach is becoming increasingly necessary to support this sector.

Cameron commented:

“Funding for regional serviced offices is not typically forthcoming, so it was a pleasure to work closely with a funder who not only displays an appetite for this asset class, but pricing that is very attractive.

“Arc & Co. is working hard in this part of the market, backed by lenders who understand and can get behind these deals. We see these sorts of transactions growing over the coming months as investors look to refinance, reposition, and undertake brown-to-green strategies.”

Arc & Co. teams up with Tuscan on £3.2m development exit loan

Arc & Co. and specialist property lender Tuscan Capital have arranged to fund a £3.2m exit bridge for a developer in need of more time to sell.

Interest on the 75% LTV facility is part rolled-up, part serviced in order to maximise leverage for the borrower.

Cameron Hayes, director at Arc & Co. and lead advisor on the deal, achieved pricing of 1% pcm for the facility and completed the transaction within a very efficient timeframe to enable repayment of the incumbent lender.

The client is targeting a strategy of selling through some of the units before refinancing onto a BTL with a specialist lender.

Cameron commented:

“Bridging for developers has really come to the fore in the last 18 months, providing a good short-term refinancing option for schemes that require more time to sell. Tuscan are quick and communicative, and together we’ve structured a solution for a borrower who may otherwise have further eroded their equity due to escalating development finance costs.”

Arc & Co. arranges £1.9m rolled-up mortgage facility

Gareth Briggs, Head of Residential UK at specialist capital advisory Arc & Co., has secured a £1.9m residential mortgage on a rolled-up interest basis, fixed for three years.

The borrowers are a couple in their 60s, who are both entrepreneurial and did not reflect significant drawings from their businesses. By having the interest rolled-up, this allowed the pair to keep their assets and pensions intact.

The five-year mortgage is priced at a fixed rate of 6.3% for three years, and is secured on a property in Kensington, London, with a value of £3.1m.

Gareth comments:

“We’re pleased to have managed to arrange this facility in a tax efficient way for the borrowers. Having excellent knowledge of the lenders whose flexibility can support this type of interest structure is of paramount importance when advising on non-standard cases. Butterfield really delivered.”

Wendy Scott, Senior Business Development Manager at Butterfield comments:

“I thoroughly enjoyed working with Gareth and the Arc & Co team to find a solution for such interesting borrowers; at BML we strive to assist HNW clients who often have complex needs.”