Arc & Co. completes £2.7m investment loan on industrial asset in Bristol

Arc & Co. is pleased to confirm the successful completion of a complex £2.675m investment loan secured against an industrial site in Bristol, arranged with Habib Bank.

The transaction was led and completed by Sam Beaumont, Asset Finance Advisor at Arc & Co., and presented several notable challenges from both an asset and borrower perspective.

The property was subject to a 6-month rolling lease, which offered almost no covenant or income security and significantly increased risk for the lender. Compounding this, the borrower operated through a complex tax set-up, requiring enhanced due diligence and careful structuring throughout the process.

Despite the complexities and an extended underwriting process, Habib Bank demonstrated a pragmatic and flexible approach.

Sam commented:

“Negotiations between the tenant and borrower were aggressive and took some time, but Habib were patient throughout the process and amended terms to reflect the changing position which gave the borrower comfort but also flexibility on the details of the lease.

“Habib also worked with the client on background income to support the loan in lieu of tenant security.

“They took a cash lien up front to account for a potential vacancy period and were happy to consider other sources of income being accessible in a worst-case scenario.”

Key terms:

• Lender: Habib Bank

• Loan amount: £2.675m

• Pricing: 2.5% over base

• LTV: 55%

• Term: 3 years

• ERCs: None, under the bank’s Islamic finance product

This deal underscores Arc & Co.’s ability to structure and deliver funding solutions for assets and borrowers that fall outside conventional lending criteria, working with lenders willing to engage with complexity and real-world risk.