A forever changing landscape

The property financing markets have undergone significant change in recent years, leading to a need for developers and investors to adapt their business models including their approach to financing. We have worked with our clients through this changing market, using our understanding and experience in the sector and leveraging our relationships in order to source and structure finance to suit their requirements.

Bank debt has been the traditional source of financing within the UK for the majority of property transactions requiring a financing component. Since 2007 bank lending has become more restrictive, therefore in order to optimise our clients' options we have built strong relationships with a range of alternative institutional and professional lenders, financiers and private equity lenders in addition to the traditional banks. With our up-to-date knowledge of the types of finance available, the active lenders and relative pricing for different projects we are able to provide you with comprehensive advice based on current market information.

Arc & Co. has built up a strong reputation in advising and structuring the correct debt package for our clients.  It's because of this that over 75% of our business each year comes from repeat clients.  With projects ranging from single property renovations to large ground up multi-unit schemes, the finance package and associated terms can determine the success or failure of a development project.  The key to our success is understanding our client's long term business plan so that we can structure and recommend a financing package that is relevant to the current project but also to their future projects.  In the last 5 years we have helped clients secure in excess of £2 billion of finance.

TYPES OF FUNDING

• Senior Debt
• Stretched Senior
• Mezzanine Debt
• Equity
• Joint Venture
• Bridge Finance

Arc & Co.'s commercial team has an in-depth knowledge of structuring both short and long-term commercial solutions for income and non-income producing commercial assets.

The global economy has had a sustained period of low interest rates.  With the expectation that in the medium to long-term we will see interest rate increases, it is more important than ever to get the correct advice.  By helping our clients to adopt a hedging strategy we ensure they maintain a positive cash flow should rates change.

TYPES OF FUNDING

• Senior/Institutional Debt
• Mezzanine Debt
• Equity
• Joint Venture
• Bridge Finance

The bridging market has evolved dramatically in the last 12 months.  What used to be thought of as a short-term, expensive solution, now includes several superior products to aid developers and investors.  Arc & Co. Structured Finance are working with lenders who will support developers by offering quick, cheap, bridging facilities to purchase land with planning (from 0.55% p.m).  This can then be rolled into a full development loan (from 6% at 60% LTGDV) and finally an attractive development exit bridge to help with the sales of the units, all with a single lender.

We have completed numerous transactions in 2017 using this strategy. The reasons why our clients like this option are:

• The ease and speed of grouping everything with one lender
• Minimising additional fees (arrangement, exit, valuation, initial QS report etc.)
• The flexibility with regards to timescale
• Reducing repetitive KYC issues
• Building a relationship with a specific lender for continuity throughout the whole transaction