development finance

Julian King joins the Arc & Co. team

Julian is the latest addition to the structured finance team. Julian began his career in Real Estate after graduating from Oxford Brookes University working for a well known London estate in Knightsbridge. He then moved on to follow his passion into development establishing a successful career as a Land Buyer. Julian purchased sites across multiple asset classes including Residential, Commercial, Retail, Retirement and Student Accommodation. More Recently, Julian has advised National clients on recruiting land personnel to bolster their land teams regionally. Julian Joins Arc & Co. bringing with him Development experience, to advise his clients on achieving the most efficient, tailored finance solutions for them and their businesses.

To connect with Julian, drop him an email at julian@arcandco.com

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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. 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 £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

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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Leading Asset Finance Advisory Helps Fund EquaGroup’s Completed Project

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.

Nick Holding-Parsons
Asset Finance Advisor
Arc & Co.

www.equagroup.co.uk

www.equagroup.co.uk

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

PCD Club Podcast Interview with Jimmy Baillie of Arc & Co on Property Finance

David: Good morning everyone and welcome. This morning we're recording a podcast with Jimmy Bailey who is from debt finance specialists Arc and Co who are based in Mayfair in London and we've got a few questions today, talking about current state of Prime Residential lending market, about bridging, a whole range of different things, arranging finance for non resident clients. So we'll hope to have an interesting conversation today, good morning Jimmy.

Jimmy: Morning David.

David: So first to kick off, everyone always wants to know about the state of Prime Residential property in London, and from your perspective on the lending side can you give us an overview on the current state the market in London?

Jimmy: It's no secret that obviously this sort of high end residential market in London is a bit flat at the moment, so obviously that does reflect in how the banks look at these transactions.  In terms of the finance market, there's definitely less on the purchase side, but there's a lot on the refinance side and the equity release side. Rates are still low, bank lending rates are still low so it is business as usual and these banks are very keen to lend.

Jimmy: One of the most important things we're finding with these transactions is to make sure that any sort of down valuations in properties don't really hurt the deal from the start, so I think it's very important you have a good relationship with valuers and some of the top valuers in London.  You can quite often get a comment on the value of the property in the way that they see it going before you actually instruct the valuation or even get the deal going, so that does help clients a lot.

These properties are all bespoke in nature, non standard, so where the banks are currently pulling back on loan to value slightly because of the liquidity issues on that end of the market at around 60 to 65 percent loan to value. Good lending rates are available, as long as you get all your ducks in a row, you make sure you're firm on the value of the property at the start, you know it really does solve a lot of issues moving forward.

David: And how to best approach the financing of new build properties. I mean a lot of Asian investors would look at properties in London, for example in Docklands, how would you approach that from financing side?

Jimmy: Yeah, obviously the trick there is that they've got the old assignable contracts situation there, so quite often with lenders nowadays, especially with these new build properties, it's the trick of balancing the actual current market value with the purchase price.  Especially with these types of deals you get an Asian buyer, and the contracts have been flipped the once, twice, maybe three times and then they've got the offer accepted and they come to you at a late stage to arrange finance. So once again the valuation is very important here. We have relationships with a couple of very good private banks who will actually look at the current market value even though the contracts have been assigned a couple of times.

Jimmy: It's important to look at the profile of the client there too. But navigating that is quite important, or once again working closely with the valuers, the relationships we have in London is very important in trying to sidestep those issues. Most high street banks will require you to hold the property for at least six months, so that's quite a restrictive issue, but as long as you do select the right banks and you do make sure you have the valuers lined up before the time, it usually is a problem that we can solve. And we do quite a lot of those at the moment, as you can imagine.

David: So on the broader point of just dealing with non resident investors, as someone who might live in Dubai or Hong Kong buying property in London, are there broader things that you tend to pick up and work with on these clients?

Jimmy: Yeah, we see quite a lot of that. The majority of our clients are all based offshore. The most important thing there is really aligning the clients expectations with that of the reality and the market at the moment. I mean, things change quite a lot in London, so you need to obviously make sure your client is prepared and they understand that.

Jimmy: When you go into some of the local private banks or even the Middle Eastern private banks, with the London branches is, as opposed to the high street banks where they would be more looking at your income and expenditure, with these types of clients we can move it to specialist private banks. They will look at the client as a whole and they will be less focused on your bog standard income and expenditure analysis and they want to look at the whole story, so it creates a lot more flexibility for clients with complex income streams.  They really help and it's important to make sure you go to the right bank for clients like these.

David: I know I can go have a lot of expertise around bridging, I mean how are you seeing the innovation for clients looking at short term financing for their property investments?

Jimmy: Well, this is obviously quite a hot topic at the moment. I mean, the short term bridging market has really has exploded in the last couple of years. I mean, there's so many new entrants into the market you struggle to keep up sometimes. Every month there seems to be a new lender. But, there's a lot of opportunity, and a lot of flexibility and there seems to be a lot of liquidity and a lot of cash in the market looking for good deals. So whereas previously people thought of bridging as a bad name, it's important to know that there are a group of private banks out there who do look at the bridging and who do offer bridging at very good rates.

Jimmy: We've got a couple of private banks who will actually look at bridging for the right client around three percent, three and a half percent all in, something along those lines. It's, for example, you've got banks like HSBC and Barclays pulling out of Russia, some of the Eastern European countries, so you've got clients who've had facilities with private banks like HSBC and Barclays, they've come in off those facilities, they're looking to refinance and their client, for example it could be a Russian client, he's found out, "Oh no, I can't refinance anymore. What do I need to do?" So quite often these cheaper, short term facilities are very useful and this can give the client enough time to either sell the property or refinance elsewhere. So this is obviously quite a useful tool and I think we're seeing more and more people come into this market, especially as it just seems to be more and more competitive as time goes by. And that naturally drives prices down.

Jimmy: So you're seeing private banks coming into that market and they seem to be changing things quite a bit for on the positive side.

David: Great, well thanks Jimmy. If you have clients who are looking at investing in property in London, either new builds or super prime or they're looking at refinancing options, please do reach out. Jimmy, I'm sure, would be delighted to hear from you. So thanks a lot this morning and I appreciate your time.

Sam Le Pard joins the Arc & Co. team

The Arc & Co team continues to expand. Following the arrival of Tom Savill and Jeremy Robinson earlier this year, we now welcome Sam Le Pard to the Commercial and Development team.

Sam joins Arc & Co following three months of training in the Arc & Co. Academy. Sam was previously a trainee solicitor at Freshfields, working in London, Dubai and Singapore and gained a first-class history degree from the University of Nottingham. Sam’s addition enhances the range of skills and experiences in the Arc & Co team.

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