Arc & Co. successfully advises on another yacht deal before heading to the Monaco Yacht Show.

As the Arc & Co. team prepare to head to Monaco for the world’s biggest international yachting exhibition, Arc & Co. Marine and Aviation has advised and completed the finance on a 40m Maiora super yacht, a second completion for September.  Representing Arc & Co. in Monaco will be Andrew Robinson, CEO of the Arc & Co. Group, Daire Dowling, Managing Director of Arc & Co. Private Client and Leon Batchelor, Managing Director of Arc & Co. Marine and Aviation. 

The Monaco Yacht Show is a unique opportunity to visit or just admire the 120 exceptional superyachts and megayachts measuring 25 to 100 metres long in the port de Monaco’s exclusive setting.  This international trade fair is entirely dedicated to yachting for prestigious clients and luxury yachting market professionals and runs from the 26th to the 29th of September.  If you would like to arrange a meeting with any of the team please email monaco@arcandco.com

A summary of the finance advised by Arc & Co.:

Yard:                     Maiora
Yacht Size:           40m
Yacht Age:           2008
LTV:                      60%
Security:              Asset backed

Arc & Co. in attendance at Cannes Yacht Show

Leon Batchelor, Managing Director of Arc & Co. Marine and Aviation is currently attending the Cannes Yacht Show. If you are also at Cannes and if you would like to arrange a meeting with Leon to discuss any finance requirements for marine or aviation assets he will be there until close of business Friday the 14th of September. Please don’t hesitate to get in touch using the details below.

Leon Batchelor
Managing Director
Arc & Co. Marine and Aviation

Mobile: +44 7913 057 881
email: leon@arcandco.com

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Arc & Co. create strategic partnership with London Belgravia

Arc & Co. and London Belgravia, a latent defects insurance and property risks specialist, have formed a strategic partnership to offer an impartial end-to-end solution for clients looking to develop new schemes. By bringing together specialists from both areas of expertise, both Arc & Co. and London Belgravia can present unrivalled advice whilst ensuring their clients obtain the best value insurance and finance. This new combined service is designed to help developers reduce costs and maintain margins in an ever increasingly competitive market.

Andrew Robinson, CEO of Arc & Co. said of the new partnership "We are always looking for best in class service providers to ensure our clients projects deliver on time and maximise profitability, these types of partnerships allow us to team up with the best in the industry and make use of their extensive experience. We have been working with London Belgravia for nearly a year now and have always been impressed by their knowledge and professionalism."

Giles Fallan, Managing Director of London Belgravia; "LBB's partnership with Arc & Co. will offer our clients impartial and connected advise in what has become a crowded and potentially overbearing market. With new entrants in to both the latent defect and development finance markets, the importance of seeking third party advice is essential. Working with Arc & Co. over the last year, we have assisted many clients achieve the strongest and most cost effective finance and insurance available."

Gareth Briggs joins Arc & Co.

As Arc & Co. continues its commitment to strengthen each of its strategic divisions, August sees Gareth Briggs join the mortgage team.  His appointment is the third in as many months at Arc & Co. as they continue to demonstrate month on month growth.

Gareth joins Arc & Co. from Chancellors Estate Agency in Reading where through rapid promotion he was appointed as one of the youngest managers in the company.  Having attained a BA Hons in Management Economics from Essex University Gareth has also completed his CeMAP qualification.  During his time at Essex Gareth captained the university Rugby league team and on graduating spent 7 months traveling Asia.

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Another August Success for Arc & Co.!

Despite being in peak holiday season, Jeremy Robinson, an Asset Finance Advisor within the Structured Finance team of Arc & Co. has worked tirelessly to complete a £1.15m loan of behalf of his client Hursley Coulsdon LLP.  The finance for a new build development in Coulsdon was arranged despite several parties being on holiday at the time of completion.  Please find details below:

  • Loan size £1.15m
  • 3 new build houses in Coulsdon in the garden of an existing house
  • Client: Hursley Coulsdon LLP
  • Completed on time, despite both the borrower and borrowers solicitor being on holiday at the time. Proof it can be done without a last minute rush, if all parties are on board!
  • Straightforward development deal completed during an especially busy August for Arc & Co.!

Toby Blythe of Hursley Coulsdon LLP said of the deal “As with most transactions, there were a number of hurdles to overcome but Jeremy Robinson from Arc & Co. was always available and ready to help with whatever was needed along with my Solicitor Tim Brittain, who assured me everything was in order before we both went on holiday.  There were a couple of final calls between Greece & Portugal but in the end the transaction went through smoothly and I’m now looking forward to getting on with building the three houses which should be ready by Spring 2019! ”

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Arc & Co.'s Structure Finance Advisor: Jeremy Robinson

 

Leading Asset Finance Advisory Helps Fund EquaGroup’s Completed Project

Arc&Co. has had the pleasure of working with a very active developer in the Essex regions. Equagroup Ltd have focused on taking advantage of PDR opportunities in Colchester and Braintree.  Just over 12 months ago we put in place their development facility for their scheme Oak House, the project is now fully complete and sold within weeks of being on the market.

The Project was funded by Zorin Finance, who have been fully supportive of EquaGroup and their scheme. Zorin’s origination Manager, Henry Wilson-Holt goes on to say, “Our thanks go to Arc&Co. for their hard work and assistance in getting this transaction completed initially. This scheme has now been redeemed ahead of schedule and above Redbook value – this goes to show the quality of projects EquaGroup work on, and the local-market knowledge they have.”

Mark Stokes, Director of EquaGroup states, “We are delighted at EquaGroup with this exclusive development completed to such exacting standards and delivering on its promise to all stakeholders including our funding and investment partners, shareholders and of course the local community.”

Since then they have started work on two different PD projects which are going to PC in early 2019. We pride ourselves on repeat business and working with EquaGroup is a prime example.


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Project Details
Location – Central Colchester
LTGDV – 70%
Loan - £1,462,000

 Nick Holding-Parsons Asset Finance Advisor Arc & Co.

Nick Holding-Parsons
Asset Finance Advisor
Arc & Co.

 www.equagroup.co.uk

www.equagroup.co.uk

Arc & Co. complete £4.3m loan for 43 apartment permitted development

Arc & Co. has completed a gross loan of £4.3m to facilitate the construction of 43 apartments. Their client originally bought an existing office with PD rights for circa 25 apartments but through a shrewd understanding of local planning policy, achieved enhanced planning for nearly double the number of apartments. Arc & Co. were asked to arrange a relatively lowly geared loan and this meant they were able to structure a facility with an attractive headline interest rate.

Charlie Armstrong said 'This is an impressive project as my client has maximised the value of the site through a clever understanding of planning regulations. There is a clear focus on the high demand from first-time buyers and being situated just 25 minutes from central London the apartments are sure to sell very well.'

See below for details:

Deal description: Office to residential PD scheme
GDV: GBP £10.0m
Loan: GBP £4.3m
Rate: 4.5% over LIBOR
Arrangement Fee: 1.25%
Exit fee: 1.25% of loan facility

Arc & Co. Close £13.75m Loan

Matthew Cleave, a senior advisor of the commercial and development team at Arc & Co. recently closed a £13.75m loan on behalf of his client Barry Howard Homes.  An active developer in the East Midlands market for many years, Barry Howard Homes’ latest scheme is an 11 acre site formerly used as allotments.  The prime location which is close to Northampton city centre has now been secured for the development of 139 homes. The immediate surrounding area has already been developed due to the overwhelming demand for new homes in Northampton.

Matthew explains “We have arranged a syndicated peak debt facility to meet the costs of the scheme in line with the proposed phasing by the client. This allows the client to control costs throughout the term of two and a half years.”

See below for the details:

Deal description: Peak debt facility on a syndicated basis for a phased development of 139 houses

Location: Northampton
LTGDV: 85%
Loan: GBP £13.75m
Blended Rate: 9% per annum
Term: 30 months

PCD Club Podcast Interview with Jimmy Baillie of Arc & Co on Property Finance

David: Good morning everyone and welcome. This morning we're recording a podcast with Jimmy Bailey who is from debt finance specialists Arc and Co who are based in Mayfair in London and we've got a few questions today, talking about current state of Prime Residential lending market, about bridging, a whole range of different things, arranging finance for non resident clients. So we'll hope to have an interesting conversation today, good morning Jimmy.

Jimmy: Morning David.

David: So first to kick off, everyone always wants to know about the state of Prime Residential property in London, and from your perspective on the lending side can you give us an overview on the current state the market in London?

Jimmy: It's no secret that obviously this sort of high end residential market in London is a bit flat at the moment, so obviously that does reflect in how the banks look at these transactions.  In terms of the finance market, there's definitely less on the purchase side, but there's a lot on the refinance side and the equity release side. Rates are still low, bank lending rates are still low so it is business as usual and these banks are very keen to lend.

Jimmy: One of the most important things we're finding with these transactions is to make sure that any sort of down valuations in properties don't really hurt the deal from the start, so I think it's very important you have a good relationship with valuers and some of the top valuers in London.  You can quite often get a comment on the value of the property in the way that they see it going before you actually instruct the valuation or even get the deal going, so that does help clients a lot.

These properties are all bespoke in nature, non standard, so where the banks are currently pulling back on loan to value slightly because of the liquidity issues on that end of the market at around 60 to 65 percent loan to value. Good lending rates are available, as long as you get all your ducks in a row, you make sure you're firm on the value of the property at the start, you know it really does solve a lot of issues moving forward.

David: And how to best approach the financing of new build properties. I mean a lot of Asian investors would look at properties in London, for example in Docklands, how would you approach that from financing side?

Jimmy: Yeah, obviously the trick there is that they've got the old assignable contracts situation there, so quite often with lenders nowadays, especially with these new build properties, it's the trick of balancing the actual current market value with the purchase price.  Especially with these types of deals you get an Asian buyer, and the contracts have been flipped the once, twice, maybe three times and then they've got the offer accepted and they come to you at a late stage to arrange finance. So once again the valuation is very important here. We have relationships with a couple of very good private banks who will actually look at the current market value even though the contracts have been assigned a couple of times.

Jimmy: It's important to look at the profile of the client there too. But navigating that is quite important, or once again working closely with the valuers, the relationships we have in London is very important in trying to sidestep those issues. Most high street banks will require you to hold the property for at least six months, so that's quite a restrictive issue, but as long as you do select the right banks and you do make sure you have the valuers lined up before the time, it usually is a problem that we can solve. And we do quite a lot of those at the moment, as you can imagine.

David: So on the broader point of just dealing with non resident investors, as someone who might live in Dubai or Hong Kong buying property in London, are there broader things that you tend to pick up and work with on these clients?

Jimmy: Yeah, we see quite a lot of that. The majority of our clients are all based offshore. The most important thing there is really aligning the clients expectations with that of the reality and the market at the moment. I mean, things change quite a lot in London, so you need to obviously make sure your client is prepared and they understand that.

Jimmy: When you go into some of the local private banks or even the Middle Eastern private banks, with the London branches is, as opposed to the high street banks where they would be more looking at your income and expenditure, with these types of clients we can move it to specialist private banks. They will look at the client as a whole and they will be less focused on your bog standard income and expenditure analysis and they want to look at the whole story, so it creates a lot more flexibility for clients with complex income streams.  They really help and it's important to make sure you go to the right bank for clients like these.

David: I know I can go have a lot of expertise around bridging, I mean how are you seeing the innovation for clients looking at short term financing for their property investments?

Jimmy: Well, this is obviously quite a hot topic at the moment. I mean, the short term bridging market has really has exploded in the last couple of years. I mean, there's so many new entrants into the market you struggle to keep up sometimes. Every month there seems to be a new lender. But, there's a lot of opportunity, and a lot of flexibility and there seems to be a lot of liquidity and a lot of cash in the market looking for good deals. So whereas previously people thought of bridging as a bad name, it's important to know that there are a group of private banks out there who do look at the bridging and who do offer bridging at very good rates.

Jimmy: We've got a couple of private banks who will actually look at bridging for the right client around three percent, three and a half percent all in, something along those lines. It's, for example, you've got banks like HSBC and Barclays pulling out of Russia, some of the Eastern European countries, so you've got clients who've had facilities with private banks like HSBC and Barclays, they've come in off those facilities, they're looking to refinance and their client, for example it could be a Russian client, he's found out, "Oh no, I can't refinance anymore. What do I need to do?" So quite often these cheaper, short term facilities are very useful and this can give the client enough time to either sell the property or refinance elsewhere. So this is obviously quite a useful tool and I think we're seeing more and more people come into this market, especially as it just seems to be more and more competitive as time goes by. And that naturally drives prices down.

Jimmy: So you're seeing private banks coming into that market and they seem to be changing things quite a bit for on the positive side.

David: Great, well thanks Jimmy. If you have clients who are looking at investing in property in London, either new builds or super prime or they're looking at refinancing options, please do reach out. Jimmy, I'm sure, would be delighted to hear from you. So thanks a lot this morning and I appreciate your time.

Arc & Co. Advise on £7.4m Purchase in Kensington

Eugene Tripuk, Head of Russia and CIS desk at Arc & Co. has closed a £4.8m loan on behalf of a Russian client.

Eugene explains "The finance was for a residential property purchase in Kensington for a Russian client with a rubble income deriving from assets in Russia. The main achievement is that we managed to secure a straightforward mortgage from a private bank at a very competitive rate, and we did so, without the requirement to have assets under management. Considering the market is more cautious of Russian clients at the moment, to achieve something like this, is a great result!"  See below for the details:

Deal description: Purchase of property in central London, for a Russian national with Russian Rubble denominated income. No AUM
Location: Kensington, London
Property Value: GBP £7.4m
LTV: 65
Loan: GBP £4.8m
Rate: 1.85%
Term: 5
Client Nationality: Russian

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