Arc & Co. secures £15.75m facility from HTB for Old Street airspace redevelopment

Andrey Redman, Director at Arc & Co., has arranged a £15.75m facility from Hampshire Trust Bank (HTB) to support the acquisition and redevelopment of a former warehouse building near Old Street, London.

The facility will fund the purchase of the property and the delivery of two additional airspace storeys, alongside a full refurbishment of the existing 18 apartments.

The scheme will create new residential units in one of London’s most active regeneration zones, within walking distance of Old Street Station.

The borrower, an experienced private developer, appointed Arc & Co. to structure a capital solution that could be delivered within a tight timeframe.

HTB provided a single facility to fund the acquisition, refurbishment and airspace construction, ensuring the project could progress without the complexity of multiple funding lines.

The deal completed in under two months from receipt of reports.

The development includes two new upper storeys constructed offsite and installed in parallel with refurbishment works. In dense urban locations, this kind of approach offers a practical route to unlocking additional homes and delivering value without requiring new land.

Galloway Hughes and Brechers LLP advised the client and HTB, respectively.

Andrey said:

"This project represents the kind of creative thinking we are proud to support. From day one, we worked closely with the borrower to deliver a funding solution that aligned with both their timeline and vision. HTB were collaborative, pragmatic and delivered with purpose, making them an ideal partner on this transaction."

Rob Syrett, head of origination at HTB, said:

"This is a strong example of the kind of deal we are seeing more of in inner London, where acquisition, refurbishment and vertical development need to be considered together. Structuring these elements within a single facility gives borrowers greater clarity and control. Airspace brings both opportunity and complexity, and it is essential to work with advisers who understand what a scheme needs to succeed. Arc & Co. brought that insight to the table and it was a pleasure to work with them again."

Neil Leitch, managing director of development finance at HTB, commented:

"Airspace development is increasingly important in London, particularly when supported by modern methods of construction and a clear planning strategy. These projects often carry more complexity than ground-up schemes, but they can deliver real value when approached intelligently. Our role as a specialist funder is to bring consistency and confidence to the table so that developers and advisers can focus on execution. It was a pleasure to support this project and work in partnership with Arc & Co."