structured finance

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.

Ed-Horn-Smith.JPG

  • 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

Arc & Co. sponsor the first Private Client Dining event of the year

Private wealth industry professionals from London and other major financial centres are set to gather at a prestigious event hosted by the Private Client Dining (PCD) Club at The Churchill hotel in London on March 8, 2018.

 

PCD Club describes itself as the premier business networking club for international private wealth professionals around the globe, and its members include recognized industry-leading figures from the legal, banking, investment management, property and finance sectors.

Professionals in London, who advise high net worth individuals, have been invited to attend PCD Club’s dinner in the city on March 8th.  The event will be attended by professionals including lawyers, accountants, trustees, property advisors, investment managers and private bankers who advise private clients on wealth planning, trusts, retirement planning, tax, succession, investment and other key issues.

David Bell, founder of PCD Club, said: “We are delighted to be back in London next month – our London dinners are always a sell-out and we are expecting over 120 professionals at our first event in the capital this year. This event will be a great opportunity for members to make new connections and to expand their professional network and referral sources on an international basis.”

Andrew Robinson, CEO of Arc & Co, added: “Arc & Co is delighted to sponsor the first PCD Club dinner of the year. We have had a long association with the network and have derived business benefit from our membership over this period of time. Sponsorship enables us to amplify our message to a large audience of professionals in a very targeted and efficient way.”

Arc & Co. advise Allies Group on £11 million of funding

Arc & Co. has successfully advised the developer Allies Group, on the acquisition and construction finance for the Clarendon House site in central Reading. The project has planning consent for a permitted development scheme of forty-nine self-contained apartments which will form part of major works on phase 1. Planning for phases 2 and 3 are currently being submitted and this will see the scheme grow to circa one hundred residential apartments.  The design will make it an exemplary addition to the fast-growing Reading town.

To assist with the purchase and development, Arc & Co. structured a facility in excess of £11 million with the opportunity for further funding when the planning consent is approved for phases 2 and 3.

Charlie Armstrong said: “Arc & Co. are delighted to have worked alongside Allies Group to structure the debt for this project and to bring forward a scheme that will no doubt be a fantastic addition to the housing stock in central Reading”.

Mario Luca Balducci, Chairman of Allies Group said: “Arc & Co. understood our business model exceptionally well and provided quick, efficient and effective solutions which were beyond typical structured finance arrangements”.

Review of 2017 and the year ahead

2017 is coming to a close and despite a troublesome financial market, Arc & Co. have had another successful year. As a team we have organised and structured over £450m of loans.

Although the headlines suggest a volatile market, there has been an increase in the amount of liquidity available and the majority of funders are still keen to deploy money into both development and investment transactions.

We have arranged 70 loans across the capital stack throughout the year, ranging from a 17.5% LTV investment facility on a central London property, up to 95% LTC/75% LTGDV on large residential developments.

Please find below a list of products we put in place throughout 2017:

·         Development & conversion loans throughout the capital stack

·         Bridge loans to purchase

·         Bridge loans to purchase, rolled into development facilities

·         Development exit bridges

·         Investment loans for purchase or refinance (in many cases releasing capital for re-investment)

·         Bridge to purchase and stabilise, rolled into long-term investment money

In 2018 we hope to do much of the same using our expertise in structuring real estate loans for all areas of the market.  If you have any transactions in the pipeline for 2018 that you would like to discuss, please make contact.

Nick Holding-Parsons

Nick is a professional debt advisor specialising in structured asset finance for UK and international clients. In the time Arc & Co. has been running, it has built strong relationships with a wide range of different funding lines to suit our clients' specific property transactions, whether it be development or investment projects. Unlike your typical advisor/broker, we do a great deal of underwriting in-house which means we can quickly find the best solution for our clients.

Tel: +44 (0) 20 3205 2129
Mobile: +44 (0) 79 7350 632
Email: nick@arcandco.com