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.