Arc & Co. and Together complete £825k funding for residential to specialist care conversion

Specialist advisory Arc & Co. has closed a 6-month loan with Together to fund the conversion of a residential property into five specialist care apartments.

The project, located in Andover, involved multiple borrowers and maximising the day one loan amount was integral to get the deal over the line.

Arc & Co. Asset Finance Advisor Henry Simpson (pictured) and Director Cameron Hayes worked together to achieve 85% LTPP on an investment valuation basis—helped by the fact that a blue-chip operator was in place to lease the apartments.

A lender would typically seek to use the 90-day value, but having the leases signed pre-construction, as well as a set of solid comparables, meant that Together was comfortable lending on the investment value instead, thereby increasing the leverage.

Henry and Cameron further negotiated additional security in the form of a plot of land.

Henry comments:

“When we were introduced to the borrowers, they had already engaged with another lender whose process seemed onerous and pricing high.

“We were pleased to be able to save them money on both interest and fees, as well as obtain the best possible day one loan amount.”

Cameron states:

“Care homes are not the most straightforward to fund but we are experienced in this asset class and understand the best approach.

“Our relationship with Together meant that we were able to present them with the whole picture, with emphasis on the credentials of the committed lessor, resulting in an outcome for our clients that exceeded their expectations.”