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%.”

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.

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.”

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.”

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.

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.”

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.”

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.

• 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

Arc & Co. achieve hat-trick following the completion on Perini Navi yacht

The team are currently working hard meeting new clients at the Monaco Yacht Show but that doesn’t mean it isn’t business as usual. Arc & Co. are pleased to announce that they have just successfully advised on the finance of a 40m Perini Navi yacht, the third deal to close this month.

Arc & Co. will be in attendance at the Monaco Yacht Show again tomorrow (Thursday 27th) and if you would like to talk to one of the team get in touch at monaco@arcandco.com.

Finance Summary
Yard:                     Perini Navi
Yacht Size:           40m
Yacht Age:           2013
LTV:                      55%
Security:              Asset backed

Arc & Co. helps ex-pat client secure 200 year old Edinburgh property despite challenging circumstances

Clients often arrive at the door of Arc & Co. having been let down elsewhere first. This was the case for a recent client who was trying to purchase a 200 year old property in Edinburgh, Scotland in time for their children returning to university. With the clock ticking, Matthew Wheeler, a financial consultant at Arc & Co., took up the challenge of securing finance for the property and to leave another client more than impressed.

Matthew, gives an overview of the situation and why it presented a challenge. “The client came to us having been let down by a lender elsewhere so was understandably nervous about losing the property he had made a generous offer on. Also, things are always made more challenging when transacting in Scotland where mortgage offers have to be produced before an offer on a property can be accepted.  This made for tight timescales and with a more vanilla case we would have focused on lenders that could move the quickest but instead focused on those who we knew would understand the complex financial situation of the client. Because the client was an ex-pat and paid in dollars, we had to work closely with the lender to make sure they were comfortable with his overall financial position and their long-term financial plans. The client was delighted with the rate the lender offered and security the fixed rate provided. We managed to have the conditional offer issued within 3 weeks of applying and the final offer shortly after in time for their children to move in before starting back at school and university.”

Summary 

• Client:  Couple both UK ex pats resident in America for over 5 years. Buying a UK property for them and their children to use while they are attending UK schools and University.

• Property: Purchase in Edinburgh of 200-year-old property, 5 bedrooms over 3 floors.

• Value:  Purchase price of £731,250 (£56,250 over value because of the market in Edinburgh being very competitive).

• Vendor: – Private couple

• Lender – HSBC 1.69% 3-year fixed rate

• Loan amount - £506,250

Matthew Wheeler
Financial Consultant
Tel: +44 (0) 203 205 2190
Mob: +44 (0) 771 198 9870
Email: matthew.wheeler@arcandco.com

Arc & Co. successfully advises on another yacht deal before heading to the Monaco Yacht Show.

As the Arc & Co. team prepare to head to Monaco for the world’s biggest international yachting exhibition, Arc & Co. Marine and Aviation has advised and completed the finance on a 40m Maiora super yacht, a second completion for September.  Representing Arc & Co. in Monaco will be Andrew Robinson, CEO of the Arc & Co. Group, Daire Dowling, Managing Director of Arc & Co. Private Client and Leon Batchelor, Managing Director of Arc & Co. Marine and Aviation. 

The Monaco Yacht Show is a unique opportunity to visit or just admire the 120 exceptional superyachts and megayachts measuring 25 to 100 metres long in the port de Monaco’s exclusive setting.  This international trade fair is entirely dedicated to yachting for prestigious clients and luxury yachting market professionals and runs from the 26th to the 29th of September.  If you would like to arrange a meeting with any of the team please email monaco@arcandco.com

A summary of the finance advised by Arc & Co.:

Yard:                     Maiora
Yacht Size:           40m
Yacht Age:           2008
LTV:                      60%
Security:              Asset backed

Arc & Co. successfully advise on the finance of a 50 meter Heesen

Frans Heesen founded the company that bears his name in 1978. Today as the Dutch based company celebrates its 40th anniversary, Heesen Yachts enjoys a reputation that sets it apart from the rest as a brand synonymous with high-quality shipbuilding and award-winning design.

It was therefore a pleasure when Leon Batchelor, Managing Director of Arc & Co. Marine and Aviation, was asked by one of our clients to advise and then arrange the finance on a new build 50m yacht from the Heesen yard.

Summary details below:

Yard: Heesen
Yacht Size: 50 meter
Yacht Age: New Delivery
LTV: 70%
Security: Asset Backed

Stock photo courtesy of Heesen Yachts

Arc & Co. create strategic partnership with London Belgravia

Arc & Co. and London Belgravia, a latent defects insurance and property risks specialist, have formed a strategic partnership to offer an impartial end-to-end solution for clients looking to develop new schemes. By bringing together specialists from both areas of expertise, both Arc & Co. and London Belgravia can present unrivalled advice whilst ensuring their clients obtain the best value insurance and finance. This new combined service is designed to help developers reduce costs and maintain margins in an ever increasingly competitive market.

Andrew Robinson, CEO of Arc & Co. said of the new partnership "We are always looking for best in class service providers to ensure our clients projects deliver on time and maximise profitability, these types of partnerships allow us to team up with the best in the industry and make use of their extensive experience. We have been working with London Belgravia for nearly a year now and have always been impressed by their knowledge and professionalism."

Giles Fallan, Managing Director of London Belgravia; "LBB's partnership with Arc & Co. will offer our clients impartial and connected advise in what has become a crowded and potentially overbearing market. With new entrants in to both the latent defect and development finance markets, the importance of seeking third party advice is essential. Working with Arc & Co. over the last year, we have assisted many clients achieve the strongest and most cost effective finance and insurance available."

Gareth Briggs joins Arc & Co.

As Arc & Co. continues its commitment to strengthen each of its strategic divisions, August sees Gareth Briggs join the mortgage team.  His appointment is the third in as many months at Arc & Co. as they continue to demonstrate month on month growth.

Gareth joins Arc & Co. from Chancellors Estate Agency in Reading where through rapid promotion he was appointed as one of the youngest managers in the company.  Having attained a BA Hons in Management Economics from Essex University Gareth has also completed his CeMAP qualification.  During his time at Essex Gareth captained the university Rugby league team and on graduating spent 7 months traveling Asia.

Another August Success for Arc & Co.!

Despite being in peak holiday season, Jeremy Robinson, an Asset Finance Advisor within the Structured Finance team of Arc & Co. has worked tirelessly to complete a £1.15m loan of behalf of his client Hursley Coulsdon LLP.  The finance for a new build development in Coulsdon was arranged despite several parties being on holiday at the time of completion.  Please find details below:

• Loan size £1.15m

• 3 new build houses in Coulsdon in the garden of an existing house

• Client: Hursley Coulsdon LLP

• Completed on time, despite both the borrower and borrowers solicitor being on holiday at the time. Proof it can be done without a last minute rush, if all parties are on board!

• Straightforward development deal completed during an especially busy August for Arc & Co.!

Toby Blythe of Hursley Coulsdon LLP said of the deal “As with most transactions, there were a number of hurdles to overcome but Jeremy Robinson from Arc & Co. was always available and ready to help with whatever was needed along with my Solicitor Tim Brittain, who assured me everything was in order before we both went on holiday.  There were a couple of final calls between Greece & Portugal but in the end the transaction went through smoothly and I’m now looking forward to getting on with building the three houses which should be ready by Spring 2019! ”

Arc & Co.'s Structure Finance Advisor: Jeremy Robinson

Leading Asset Finance Advisory Helps Fund EquaGroup’s Completed Project

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Arc&Co. has had the pleasure of working with a very active developer in the Essex regions. Equagroup Ltd have focused on taking advantage of PDR opportunities in Colchester and Braintree.  Just over 12 months ago we put in place their development facility for their scheme Oak House, the project is now fully complete and sold within weeks of being on the market.

The Project was funded by Zorin Finance, who have been fully supportive of EquaGroup and their scheme. Zorin’s origination Manager, Henry Wilson-Holt goes on to say, “Our thanks go to Arc&Co. for their hard work and assistance in getting this transaction completed initially. This scheme has now been redeemed ahead of schedule and above Redbook value – this goes to show the quality of projects EquaGroup work on, and the local-market knowledge they have.”

Mark Stokes, Director of EquaGroup states, “We are delighted at EquaGroup with this exclusive development completed to such exacting standards and delivering on its promise to all stakeholders including our funding and investment partners, shareholders and of course the local community.”

Since then they have started work on two different PD projects which are going to PC in early 2019. We pride ourselves on repeat business and working with EquaGroup is a prime example.

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Project Details
Location – Central Colchester
LTGDV – 70%
Loan - £1,462,000

Nick Holding-Parsons
Asset Finance Advisor
Arc & Co.

www.equagroup.co.uk

Arc & Co. complete £4.3m loan for 43 apartment permitted development

Arc & Co. has completed a gross loan of £4.3m to facilitate the construction of 43 apartments. Their client originally bought an existing office with PD rights for circa 25 apartments but through a shrewd understanding of local planning policy, achieved enhanced planning for nearly double the number of apartments. Arc & Co. were asked to arrange a relatively lowly geared loan and this meant they were able to structure a facility with an attractive headline interest rate.

Charlie Armstrong said 'This is an impressive project as my client has maximised the value of the site through a clever understanding of planning regulations. There is a clear focus on the high demand from first-time buyers and being situated just 25 minutes from central London the apartments are sure to sell very well.'

See below for details:

Deal description: Office to residential PD scheme
GDV: GBP £10.0m
Loan: GBP £4.3m
Rate: 4.5% over LIBOR
Arrangement Fee: 1.25%
Exit fee: 1.25% of loan facility

Arc & Co. Close £13.75m Loan

Matthew Cleave, a senior advisor of the commercial and development team at Arc & Co. recently closed a £13.75m loan on behalf of his client Barry Howard Homes.  An active developer in the East Midlands market for many years, Barry Howard Homes’ latest scheme is an 11 acre site formerly used as allotments.  The prime location which is close to Northampton city centre has now been secured for the development of 139 homes. The immediate surrounding area has already been developed due to the overwhelming demand for new homes in Northampton.

Matthew explains “We have arranged a syndicated peak debt facility to meet the costs of the scheme in line with the proposed phasing by the client. This allows the client to control costs throughout the term of two and a half years.”

See below for the details:

Deal description: Peak debt facility on a syndicated basis for a phased development of 139 houses

Location: Northampton
LTGDV: 85%
Loan: GBP £13.75m
Blended Rate: 9% per annum
Term: 30 months