Arc & Co. advises Ktesius on landmark residential scheme in central Brighton

John Kerrigan, Director of Arc & Co. Structured Finance, has successfully advised the developer, Kteisus, on the acquisition and construction finance for the Astoria Cinema site in the heart of Brighton.  The project has full planning consent for the demolition of the existing building to create a mixed use scheme comprising of 70 private residential units, a gym, TV room, ground floor commercial space and 72 cycle spaces.

To assist the purchase and subsequent development, Arc & Co. structured a facility in excess of £20m with an institutional development funder.  This enables Ktesius to secure the site and deliver the development in 2019, forming a new mixed-use residential-led scheme which will bring vitality to the area.

John Kerrigan said: “Arc & Co. are proud to have supported Ktesius to achieve the purchase of this landmark development site in the centre of Brighton. We look forward to assisting them with their future funding requirements”.

Ken MacRae from Ktesius added: “John and the Arc & Co. team are extremely focussed and effective, and we will certainly engage them in the future to advise on debt structuring.”

Arc & Co. advises Inspired on funding for two home county residential schemes with a combined GDV of £27m

The first, Bridge House is a 61-apartment scheme in Chertsey includes a £12.9m senior loan from Amicus.

Bridge House, an early 2000s office building, will be refurbished and extended to provide 39 one and two-bedroom micro-apartments and 22 standard-sized one and two-bedroom apartments close to Chertsey Bridge and the River Thames. The scheme has an estimated GDV of £20.4m. Chertsey is an employment hub with Samsung, Sony, Toshiba, Procter & Gamble and McLaren all nearby.

The second secures £5.2m for a 25-unit build to rent scheme in Farnborough includes a £3.9m senior loan from Octopus.

25 two and three-bedroom maisonettes off Westmead in Farnborough town centre will be refurbished and reconfigured to create high-spec flat shares for rent on a room by room basis. The scheme has an estimated GDV of £6.2m and is situated just 0.4 miles from the railway station for a fast 34-minute train to London Waterloo.  

John Kerrigan, Director at Arc & Co. Structured Finance, said: “The completion of these two high calibre development transactions, along with the £44m Impact House development loan, concludes a very busy, but successful period for Arc & Co, Inspired and our funding partners. To complete three development transactions of this scale and complexity could not have been achieved without very close working relationships between all of the key parties involved.”

Keith Aldridge, Managing Director at Amicus Property Finance, said: “We are delighted to have been able to support this project – a relatively complex deal, driven to success by an experienced and proactive developer and broker, plus valuers Kempton Carr Croft and FieldFisher who managed the legalities. Overall, this is a great example of where effective stakeholder collaboration worked in partnership with our experienced underwriting team to deliver a great result.”

Emma Burke, Head of Development Origination at Octopus, said: “We were delighted to work with Arc & Co., one of our key partners, to structure and fund Inspired’s latest development scheme with our new 65% LTGDV low cost senior stretch development product. This is an extremely well-located residential scheme and forms part of an exciting development portfolio.”

Arc & Co. advise Inspired on securing £44m development loan for flagship scheme Impact House

Inspired Asset Management has secured development finance for Impact House, its £90m GDV, 235-apartment scheme on Croydon’s Edridge Road.

A total of £61.5m was raised through a blend of senior development and mezzanine finance. Arc & Co. advised on the structure of the £44m senior loan from GreenOak.

The development will comprise 197 one and two-bedroom micro-apartments and 38 larger one, two and three-bedroom apartments built to the nationally described space standard, including four exclusive duplex penthouses. Residents will also have access to a ninth-floor communal rooftop terrace and a Wi-Fi Ready club lounge on the ground floor. The apartments will be designed to a high specification, including hardwood flooring, granite worktops and designer bathrooms.

Predominantly a permitted development scheme, Inspired received planning permission to convert the upper floors of the former office building to residential in April this year.

Built in the 1960s, Impact House was extended and refurbished in 2010 before being purchased by Inspired for £25m in 2015. With construction commencing this month, the iconic 16-story building is set to undergo a radical transformation that will see it stripped back to the core and reskinned with an all new contemporary residential facade.

Commenting, Martin Skinner, Chief Executive at Inspired Asset Management, said: “We are thrilled to get funding for what will be our largest scheme to date. The team has worked extremely hard to get it over the line and it is probably the first time in six months that I have seen my finance director with a beaming smile. One thing is for sure, this is going to be a special development that is going to make an Impact in Croydon.”

John Kerrigan – Director at Arc & Co. Structured Finance stated that “Arc & Co. have been privileged to advise Inspired on the funding structure for Impact House, from acquisition right through to development. It is true testament to the quality of this flagship scheme, and the calibre of Inspired, that a development facility of this size and complexity has been structured.”

With prices starting at £304,950 for a one-bedroom micro-apartment, more than 100 apartments have already been reserved.