Arc & Co. Structures £1.193m Development Exit Facility for Part-Built Solihull Scheme

Arc & Co. has successfully arranged a £1.193m flexible development exit facility on behalf of a Solihull-based property developer, secured against a part-built residential scheme in Lapworth.

The facility was provided by Octane Capital at 40% LTV with a 12-month term at a rate of 0.71%.

The site had been entirely self-funded to date, with no existing debt in place. The borrower required capital both to complete the remaining construction works and to release equity for future investment opportunities.

Despite planning permission expiring in January 2026 and several title complications during the process, Octane Capital was able to take a commercial view, structuring a bespoke facility that delivered both build-completion certainty and post-completion financial flexibility.

The transaction was structured as a split-tranche facility: £500,000 as an initial draw to cover the full cost of remaining works, with a further £500,000 available as development exit capital upon completion. Notably, the borrower incurs no interest on the second tranche unless and until it is drawn, providing liquidity optionality without cost.

During the process, several technical complexities arose—including title split issues causing a 2–3 week delay and a CIL payment clause that required loan documents to be re-drafted. However, Arc & Co. worked closely with Octane Capital to navigate these challenges and maintain momentum towards completion.

Henry Simpson, Asset Finance Advisor at Arc & Co., commented:

"There are many developers whose funding requirements are less than straightforward. Whether that involves a part-built project, tight planning deadlines, or title complexities—it's our job to find the right funding partner and terms.

"Arc & Co. has deep relationships with lenders and an understanding of loan structuring that adds huge value to clients. Throughout the process, Graham McCaulay at Octane was instrumental in ensuring a coordinated, smooth journey to completion. He kept in consistent communication with me, the borrower and the legal teams so everyone remained aligned as issues arose and were resolved."

Arc & Co. specialises in arranging tailored development finance, bridging loans, and exit facilities for property professionals across the UK. With access to a comprehensive panel of specialist lenders and deep market expertise, the team is well-positioned to structure creative solutions for complex funding requirements.