Arc & Co. Set Themselves Apart By Advising Client On Refinancing 18 Property Central London Portfolio.

This situation may not seem out of the ordinary at first glance.  An 18 property portfolio valued in excess of £10m isn’t unusual, but the circumstances around the refinance made this a very complex deal.  Case studies like this demonstrate how advisers at Arc & Co differentiate from their competitors.  Daire Dowling, Managing Director of Arc & Co. Private Finance went well beyond what was expected and explains below why this was such an unusual case.

“The client wished to raise £6.3m against their £10.5m property portfolio in central London. Historic issues with rent, HMO licencing and planning made presenting the file to prospective lenders difficult. I worked closely with the clients tax advisers to switch the portfolio from a partnership to a Ltd company.  This allowed the portfolio to be as efficient as possible. Once the new company was setup a full transfer was carried out with clearance from HMRC, in writing, that a stamp duty exemption would be allowed for the transfer of the assets.  We then presented the client with a sharia compliant loan ,due to historic income being low, on a 5 year fixed rate at 4.3%.”

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To speak to Daire about any finance requirement please use the contact details below:

Daire Dowling
Managing Director
Arc & Co. Private Finance

Tel: +44 (0)20 3205 2196
Mob: +44 (0)79 2936 9175
Email: daire@arcandco.com

ARC & CO. ADVISES ON £2.3M LOAN FOR THE SPECULATIVE OFFICE CONVERSION OF 200-YEAR OLD LISTED BUILDING IN IPSWICH

Mayfair-based specialist finance advisor, Arc & Co. today announced it has advised Pertwee Park Ltd on a £2.3m development loan. This loan allows for the conversion of one of Ipswich’s most well-known landmarks, an early 19th century building most recently used as a nightclub, into upmarket offices. High tech and media companies are likely to be the new tenants.

The Malting’s in Princes Street, is being converted by Pertwee Estates, the Colchester based business park developer run by brothers Mark and Julian Pertwee, who purchased the historic buildings from previous owner Ipswich Borough Council. The former entertainment venue, that previously operated as The Malthouse and before that as Kartouche and Hollywood nightclubs, has been standing empty for years.

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Jeremy Robinson, Asset Finance Adviser at Arc & Co., said:This was an unusual funding requirement in that it was a speculative development of office space outside of London. Without tenants already having committed to the property this adds a level of risk for any potential lenders making it harder to obtain good terms for the client. However, due to both the quality of the scheme and that of the client we were able to place the transaction on attractive terms by working closely with a supportive Lender.

Mark Pertwee, Managing Director at Pertwee Park Ltd, said: Our intention with The Malting’s is to create something new and unique in the area. This is a building with a very individual style and in its restoration we are celebrating its 200-year-old architectural heritage through a contemporary refurbishment. Princes Street, the corridor between the railway station and town centre, is now widely recognised as Ipswich’s prime business district.”  

Adam Bovingdon, Property Development Director, United Trust Bank commented: “We were introduced to Mark Pertwee by Jeremy Robinson of Arc & Co. and asked to provide a development facility. The application presented by Jeremy was professionally put together and was accompanied by a number of impressive CGI’s showcasing how The Malting’s would look both internally and externally once complete.

We quickly arranged a site meeting with Jeremy and Mark who was able to talk us through his commercial development experience. United Trust Bank are very pleased to be able to support the project which, once finished, will provide high quality office accommodation in one of Ipswich’s most iconic buildings.”

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To get in touch with Jeremy please use the contact details below:

Jeremy Robinson
Asset Finance Advisor

Office: +44 (0)20 3205 2199
Mobile: +44 (0)7976 737552
Email: jeremy@arcandco.com

Arc & Co. Advised On Over €28m of Superyacht Finance In Q3.

Last month’s Monaco Yacht Show showed everyone that the Superyacht market is as hot as ever. In Q3, Arc & Co. advised and completed on three remarkable Superyacht deals totalling over €28m. 

Just as both the technology and size of Superyachts continues to progress, so are the ways in which they can be financed.  It is important to understand your options and meet with an experienced marine finance advisor.  Contact our specialist marine finance advisors at Arc & Co. on yachtfinance@arcandco.com to arrange a meeting.

ARC & CO. STRUCTURE £11M DEVELOPMENT EXIT FACILITY ON LUXURY 11-UNIT SCHEME IN SOUTH EAST LONDON

Mayfair-based specialist finance advisor, Arc & Co. along with bridging loan specialist, Octane Capital, today announced it has provided Arc & Co.’s client with an £11m development exit loan. The development exit loan provides the developer with extra time to sell units and additional working capital. 

The loan is against a pre-practical completion luxury scheme in south east London comprising of 11 units, each valued at a minimum £1m. To date, one of the units has sold and two have exchanged. 

The one-year exit facility, at 70% LTV (net), has given the developer enough time to carry out the remaining work on the units and additional funds to boost both working capital and cash flow. 

John Kerrigan, Director, Structured Finance, Arc & Co, added: “The developer is a key client of Arc & Co but this particular scheme, despite strong fundamentals, had a number of complex issues to address that we knew would be beyond the comfort zone or skill set of many lenders. The Octane team have shown their ability in structuring complex loans and were pragmatic and persistent throughout.”

Alex Tyrwhitt, Head of Structured Finance, Octane Capital, commented: “This was a complex loan involving multiple moving parts but the support we received from Arc & Co was second to none and helped us get it across the line ahead of schedule. We look forward to working on many more deals with John and the team in the months ahead. They’re a sophisticated broker that understand the mechanics of even the most complex loan structures.”

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If you have an existing or up coming project you would like some advice on please get in touch with John on the details below:

John Kerrigan
Director
Arc & Co. Structured Finance
Tel: +44 (0) 203 205 2124
Mobile: +44 (0) 750 822 5678
Email: john@arcandco.com

Arc & Co. Advises On Exit Bridge Loan For 200 Year Old Barn Conversions In Cumbria

Clients often turn to Arc & Co. when deals are particularly complicated, time-pressed or when high street lenders are not an option.  All three were the case when David South of Hamilton South Limited, a Cumbrian property developer, approached Sam Le Pard, an Asset Finance Advisor from the Structured Finance team at Arc & Co. to arrange an exit bridge loan following the restoration and conversion of two fantastic 200 year old barns. 

The client was looking for advice and assistance on arranging bridge finance against three stone barns in Cumbria. Two of the three barns had been carefully renovated, with work on the third yet to start.  The original development facility was coming to the end of its term and needed to be re-financed on an exit bridge to allow the client a proper sales period to market the properties. 

There were three factors that made this transaction challenging (and interesting!):

    • The assets themselves, 200-year-old Cumbrian stone barns converted into large family properties for the first time, were unique.

    • The location was particularly rural; and while great for hunting, fishing, golf, wildlife, and hiking (the properties are in view of the Lake District mountains), slightly unknown to certain mainstream lenders.

    • It was a race against time as the existing facility was coming to an end. 

In the end, Arc & Co. worked closely with David South and Jon Salisbury  of Ortus Secured Finance to arrange a £700,000 loan at a rate the client was very happy with. Arc & Co were able to use their knowledge of the finance market to match David South's unique project with Ortus' flexible lending approach to ensure the required funding was obtained.

David South was particularly pleased that Arc & Co took the trouble to visit the barns to get a proper feel for the opportunity in this relatively undiscovered area of North West Cumbria. David has kindly since asked us to act for him in structuring the finance for Phase 2 of his development.  

The properties are currently being marketed by national agent Fine & Country who declared them as 'Awesome' and see a growing market opportunity for high end quality developments across North West Cumbria.

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To get in touch with Sam please use the contact details below:

Sam Le Pard
Asset Advisor
Arc & Co. Structured Finance

Tel: +44 (0)20 3205 2195
Mob: +44 (0)79 1715 4432
Email: sam@arcandco.com

Case Study – How To Mortgage A £14m Property With No Income

Calculating how much a client could borrow to finance a property used to be very simple.  Lenders would offer between 4 or 5 times their annual salary subject to the loan to value ratio.  Today calculating how much someone can borrow is a little more complicated with many different criteria being used to determine affordability.  At Arc & Co. our clients range from first time buyers through to high net worth individuals whose income is derived from multiple countries and in multiple forms.  A recent client fell into the latter category who was wanting to finance a £14m property in near Hyde Park, a prime central London location whose past residents include Sir Winston Churchill and the Earl of Mansfield.

Daire Dowling, Managing Director of Arc & Co. Private Finance, explains why the deal was so complex; “The client wished to raise £4m on a £14m property near Hyde Park after taking tax advice from their accountant.  The client didn’t have a traditional income stream, so we had to capitalise an investment portfolio in the background and put interest on account.  The main motivation for the client was to cut down on remitted income into the UK from overseas and to generate clean capital within the UK jurisdiction for living expenses and succession planning. We were able to achieve all of this.


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Finance summary

  • Loan: £4m

  • Term: 5 year (interest only)

  • Rate: 1.75% margin on 3 month libor

  • Termination: No early repayment charge should the client decide to sell or pay down the loan for flexibility

If you would like to speak to an advisor about a property purchase or remortgage then please get in touch with the following link.

ARC & CO. OPENS NEW OFFICE IN THE COTSWOLDS TO MEET GROWING DEMAND

Long established Mayfair-based specialist finance advisor, Arc & Co. recognises a key growing market in the Cotswolds for the Private Client business by opening an office in Oxfordshire headed up by Jamie Rigby.

Jamie and his team live locally and from the new office will continue to work closely with local private clients, developers and professionals. Jamie has worked with Cotswold & Midlands clients for over 11 years and maintains an excellent professional reputation in the area.

Andrew Robinson, Chief Executive Officer, Arc & Co, added: “After ten years in London, Arc & Co. recognises a growing demand for our Private Clients services in the Cotswolds. What makes our team even stronger is the fact that they live locally and already have strong relationships with the local property professionals.”

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To arrange an appointment with Jamie at the new office please find his contact details below:

Jamie Rigby
Arc & Co. Private Client
Financial Consultant
Office: +44 (0) 1295 793170
Mob: +44 (0) 783 394 2392
Email: jamie@arcandco.com

ARC & CO. ADVISES ON £13.4M DEVELOPMENT LOAN FOR CRAWLEY BTR SCHEME

Mayfair-based specialist finance advisor, Arc & Co. today announced it has advised Inspired Asset Management on a £13.4m development loan.  

The development is being funded through a £13.4m senior loan from Zorin Finance. 

Commenting, John Kerrigan, Director at Arc & Co., said: “The funding of this residential development is welcome news in a difficult market. It proves that there is still funding available for well-located, well-designed schemes, which are sensibly priced and supported by a good calibre sponsor.”

The former office and retail building will be demolished to make way for 78 new one and two bedroom apartments for rent with a communal rooftop terrace and 7,998 square foot of ground floor retail. It is a 14-month build programme with practical completion anticipated for Q1 2020.  

Inspired Asset Management purchased the building in 2015 and obtained planning permission for the scheme in 2016. The development has an estimated GDV of £21m and is expected to generate circa £1.75m gross rental income per annum.  

With a population in excess of 105,000, Crawley is a thriving commuter town with trains to Gatwick Airport in just 9 minutes and London Victoria in 42 minutes. A substantial growth programme is underway with £31.4m being invested in infrastructure improvements and physical regeneration designed to support new homes, business investment and employment. 

Martin Skinner, Chief Executive of Inspired Asset Management, said: “I’m delighted to announce that we have secured development finance for this exciting scheme, Inspired’s first wholly new-build development, and we can now look forward to adding another asset to our emerging Build to Rent portfolio. Crawley offers fast trains to London as well as being a local employment hub just 4.5 miles from Gatwick Airport. There is strong rental demand, especially for high quality new homes located in the town centre.”

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If you you would like to speak to John regarding development finance please find his contact details below.

John Kerrigan
Director
Arc & Co. Structured Finance

Tel: +44 (0) 203 205 2124
Mobile: +44 (0) 750 822 5678
Email: john@arcandco.com

Lender appetite slowly returns to super prime London as Arc & Co. complete £16.8m loan

After years of restricted lending in London’s super prime market and with the few lenders prepared to offer loans against large single assets restricting loan to values to less than 50%, Arc & Co. are starting to see green shoots of optimism with a handful of specialist lenders re-entering the market.

Edward Horn-Smith, Managing Director of Arc & Co. Structured Finance, was recently instructed by an existing client to refinance a development loan on a super prime asset in central London.  The loan was completed in just three weeks from professional instruction.

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  • Ultra Prime High End single unit

  • Bridge to sell

  • 62.5% LTV

  • 7.95% pa (All in rate)

  • £16.8m loan amount

Edward Horn-Smith
Managing Director
Arc & Co. Structured Finance
Tel: +44 (0) 20 3205 2126
Mobile: +44 (0) 778 863 2139
Email: edward@arcandco.com

Alan Burgess joins the Arc & Co. team

Alan is the latest addition to the structured finance team. Having studied at the University of Birmingham and achieving a BSc Joint Honours in Geography & Town Planning, Alan went on to work in his family’s property development company where his interest in property finance was first piqued. Alan is also a keen aviator having been involved with various RAF organisations from a young age.

Alan said of joining ‘When I decided property finance was the industry I’d like to work in and after having an insight into the level of service they provided, I approached Arc & Co. I wanted to be trained to the highest standard and jumped at the opportunity of being part of the team.’

To connect with Alan head to LinkedIn or drop him an email at alan@arcandco.com

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