Arc & Co. arranges £1m regulated mortgage for developer

Specialist real estate advisory firm Arc & Co. has arranged a £1m mortgage for a property developer client, secured against the borrower’s main residence.

A proportion of the 72% LTV loan was used to repay existing debt, and the rest released as equity to invest into development projects.

The mortgage is for a term of five years at a fixed rate of 5.24%.

Gareth Briggs, Head of Residential UK at Arc & Co., navigated a complex income structure with the lender to get this deal over the line.

“As with many developer clients, income can appear ‘lumpy’. The lender was able to take a commercial view on this and used the latest year’s net profit from the borrower’s company accounts, even though they hadn’t drawn this income, to satisfy affordability.

“We’re pleased to be able to access attractive lending terms for a wide variety of client profiles, including property developers.”

Arc & Co. named three-time Development Finance Broker of the Year

Arc & Co. has been named Development Finance Broker of the Year for the third year running in the Business Moneyfacts Awards 2024.

The announcement was made on 18th April at the awards ceremony held at Evolution in Battersea Park, London.

The Arc & Co. team were also recognised in the category of Commercial Finance Broker of the Year as runner-up.

Business Moneyfacts relies on detailed written submissions, extensive industry testimonials and a judging panel when determining the award winners.

Commenting on the achievement, Arc & Co. CEO Andrew Robinson said:

“We’re extremely proud to have triumphed in a category with such strong contenders.

“It has been a testing time in the development funding space, and our team has dedicated themselves to deepening their knowledge and relationships, resulting in the standard of client outcomes that we’ve become known for.

“Providing advice in the development debt space is all about understanding the sector, its components, and borrower challenges through every cycle; we remain comfortable with these complexities and look forward to serving the market over the next 12 months.”

Arc & Co. supports developer with £6.5m acquisition and refurb loan

Arc & Co. has structured a £6.5m loan for a developer to acquire and refurbish a mews house in Mayfair.

Working closely with lender CapitalRise, Senior Broker Vishal Dixit managed to secure the funds in just seven weeks.

The facility will be used to finance the acquisition, structural refurbishment and basement conversion of the luxury central London property.

Vishal commented: “We are delighted to have partnered with Katy Katani and CapitalRise for the provision of a senior debt facility for our client.

“This is a wonderful example of what can be achieved with all key parties including sponsor, lender, adviser, and professionals, working collaboratively for the common goal in a tight timeframe of seven weeks.

“CapitalRise’s experience and breadth of knowledge in understanding this sector made them the ideal lender to partner with our client.”

ARC & CO. ARRANGES $14M LOAN SECURED AGAINST LUXURY YACHT

Equity released from the unencumbered asset was required for business capital purposes

Specialist debt advisory firm Arc & Co. has secured $14m for a Middle Eastern client in need of equity release.

The funding was secured against a brand new 50-metre Mangusta 165 REV yacht.

Nikita Nigai, Head of International Clients at Arc & Co. and lead advisor on the deal, worked with a US hedge fund to structure the unique funding package, which was used to release the funds which are to be utilised as a business cash injection.

The 50% LTV facility is for a term of 18 months.

Nikita navigated contracted timescales, confidentiality requirements, and complex legal requirements to get this deal over the line.

Nikita commented: “The first complexity faced is that the usual four- to six-month process with a standard term lender was not acceptable—we needed it funded in a shorter timeframe. 

“Secondly, equity release is not typically the preferred kind of finance offered by many yacht lenders.

“Due to a number of cross-border legal restrictions, we had to find a lender who is experienced and flexible enough to take an individual approach.”

ARC & CO. SECURES £1.2M BRIDGE FOR BMV ACQUISITION

Specialist debt advisory firm Arc & Co. has arranged a bridging loan for the acquisition of three below market value units from a housing association.

Vishal Dixit, lead advisor in the transaction, obtained the loan at 74% LTV and 98% loan-to-purchase, requiring a 2% equity contribution from the borrower.

The £1.2m facility is for a term of 12 months, at a rate of 1.09% per month.

Vishal commented:

“It was important that we reduce the equity stake in the purchase as much as possible, given the client’s plans to refurbish the properties using their own capital.

“Utilising our extensive network of lending partners, we were able to negotiate favourable terms that fit the borrowers’ requirements, getting the deal over the line inside of four weeks.”

Arc & Co. wins prestigious award for second year running

We’re delighted to have been named Debt Adviser of the Year (sub-£50m deals) UK in the REC Awards 2023.

The category was first introduced by Real Estate Capital Europe at the end of 2022 and was won by Arc & Co. - we’re proud to have retained the title for another 12 months.

This year marks the 10th annual REC Awards, with the publication stating “the organisations, transactions and individuals featured across the categories demonstrated impressive activities during the year, against a tough backdrop.”

ARC & CO. ARRANGES £5.8M EXIT BRIDGE, STRUCTURING REPAYMENT TO SAVE CLIENT INTEREST

Specialist debt advisory firm Arc & Co. has secured a £5.8m development exit bridge for a large housebuilder in under four weeks.

The project comprises 14 high-spec residential units in Dorset and was advised on by Arc & Co. Director Cameron Hayes.

 The 12-month, 70% LTV loan, required to take out the existing development debt, will be repaid from sales proceeds pari passu with the existing mezzanine finance at a split of 65/35.

Cameron commented: “The client was looking for a funding solution to refinance senior and mezzanine finance during term, rather than after the senior loan, and we’re pleased to have negotiated an agreed split of 65/35 with the lender to facilitate this, improving the overall economics.”

ARC & CO. STRUCTURES £18.7M IN FUNDING TO REFINANCE LEISURE AND OFFICE ASSETS

Specialist advisory firm Arc & Co. has secured £18.7m from a London based family office for two commercial funding transactions.

The first deal was the refinance of a retail and commercial asset in Ashford. The gross loan of £6.2m facilitated the purchase of high-quality retail and office space in Bristol, with a strategy for value add, regearing leases and marketing to new prospective tenants.

The 62% loan, headed up by Arc & Co. Director Cameron Hayes, is for a term of five years.

“It’s great to complete this with a lender that not only understands the intricacies of retail but also can get comfortable with an international borrowing structure,” Cameron commented.

The second case involved the refinancing of a national leisure and office portfolio.

A gross loan of £12.5m at an LTV of 75% was secured for five years, allowing the client time and flexibility to restructure the group of assets. 

Arc & Co. Managing Director, Edward Horn-Smith, said: “It’s important when advising our clients that we provide them with the best possible options—not just based on pricing, but also by bringing in a funding partner that understands and supports the wider business plan.”

ARC & CO. ARRANGES £4.6M DEVELOPER EXIT LOAN ACROSS THREE PRIME PROPERTIES

Real estate finance advisory firm Arc & Co. has arranged a gross exit bridge of £4.6 million on behalf of an experienced developer client on the South Coast.

Cameron Hayes, Director at Arc & Co., worked closely with Ultimate Finance to get this 70% LTV transaction over the line in under three weeks, facilitated in part by the lender’s flexibility in using an existing valuation to complete the deal.

The 12-month loan is one of Ultimate Finance’s largest transactions to date.

Cameron commented: “This project was a combined effort between all parties, and it is great to complete on this financing for the client with such speed.

“The facility enables the client to pay off more expensive financing and sell through the remaining units over the next 12-months.”

Laurence Travaskis, Regional Director at Ultimate Finance, said: “Having a well packaged case and a broker who really knows the ins and outs of the borrower’s business always allows us to progress quickly—and is something we've come to expect from Arc & Co.”

Arc & Co. arranges £1.6m second charge bridging loan on large single prime asset

Arc & Co. has arranged a £1.6m second charge bridging loan for a developer on a large single asset based in Wentworth.

This loan was required for a different investment purpose and the first charge lender – also Glenhawk – was able to advance the second facility given the relatively low combined LTV.

The value of the property, however, had increased from its original £19m to a GDV of £24.5m during the loan term, enabling Glenhawk to advance a second charge bridging loan.

The loan represented 51% of the GDV and was priced at 1.3% pcm for a term of eight months.

Andrew Robinson, CEO of Arc & Co. and lead broker on the case, commented: “It’s notoriously difficult to place a second charge behind a bridging lender, never mind with the added complexity of this being a prime single asset.

“Glenhawk took a commercial approach to this case, and we managed to match the term length of both loans so that they redeem together—streamlining the client’s overall debt package.”

Glenhawk Managing Director Nick Hilton said: “Collaborating with Arc & Co. for nearly a decade, on multiple finance deals, is testament to their unrivalled expertise in the prime real estate market.

“For this loan, we navigated a dual charge structure, optimising flexibility and precision for an evolving property project. This strategic approach has resulted in a £6 million increase in the properties GDV and an imminent sale (subject to contract) for the client.”

Arc & Co. & Delancey Real Estate close £19.5 million facility for acquisition of prime mixed-use asset

The senior secured three-year fixed rate facility was used to assist a developer

with the purchase in St James’s, Central London

Arc & Co. & Delancey Real Estate have closed a senior secured three-year, fixed rate £19.5 million facility to assist a London-based developer with the acquisition of an existing office in St James’s.

The deal is expected to be the first of many in a market which Delancey believes will be an opportune time for its lending business, given the current retreat of traditional financing sources which are further increasing the need for alternative lenders.

The St James’s based property in London’s West End is a prime freehold, 16,000 sqft mixed-use asset, and the acquisition financing offers a rare opportunity for exposure to a freehold asset in the area’s sub-market.

The developer intends to carry out a comprehensive refurbishment of the property once proposed planning has been achieved. The debt package represents a loan-to-value of c. 70% with the ability for the developer to request capital for the refurbishment.

Philip Kay, Director at Arc & Co. said:

“We were delighted to be given the opportunity to work with two excellent counterparties. On the sponsor side, the developer’s investment thesis is very robust with investments targeted in strong London locations. In a difficult environment for 2023, we were also pleased to work with Delancey as a competitive and flexible capital provider with strong appetite for the asset class and business plan. We look forward to working together with both parties in the near future.”  

Commenting further on the market, Martin Farinola of Delancey said:

“Last year was a volatile time in the market. It was still extremely busy sourcing deals, however there was a certain fragility in closing loans due to lower valuations, sponsors deciding not to execute deals because they weren’t accretive to business plans, or other property-related reasons. The majority of deal flow over the course of the year was certainly refinancing deals rather than acquisitions.  However, in the last few months of 2023 we saw an uptick in acquisitions and attractive deals, signifying a positive market trajectory.”

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ARC & CO. ARRANGES £9.5M LOAN TO SECURE APARTMENT IN LANDMARK OWO BUILDING

The bridging facility was required by an international client to fund

the prime central London purchase

Real estate finance advisory firm Arc & Co. has arranged a bridging loan of £9.5 million on behalf of a private international client for the acquisition of a luxury apartment in London.

The bridging facility was secured from specialist lender West One for the acquisition of an apartment within The OWO Residences on Whitehall, managed by Raffles hotel group.

The loan is for a term of 12 months at an interest rate of 1.15% per month.

Nikita Nigai, private client advisor at Arc & Co., said:

“Approaching the completion date for the acquisition, the client was unable to find and arrange long-term finance and assumed they would be able to receive a completion extension from the developer.

“Nowadays, current market conditions mean that developers usually don’t wait or grant extensions, so we concluded that there wasn’t enough time to secure a term loan. The plan was agreed as a bridge which would then be refinanced onto term debt, for which we already have several interested banks.

“It’s quite important to present a deal with a complex UBO in the right way from day one. Having knowledge of this particular market, I was able to explain all the risks and opportunities and therefore manage clients' expectations correctly.

“West One were quick, even on this complex deal involving a foreign national, and fantastic to deal with.”

Michael Grant, head of sales – bridging and development finance at West One, commented: “Working with Nikita is always a pleasure. On larger deals such as this one, communication is particularly important in order to execute, and attention to detail is vital.

“I praise Nikita’s tenacity and expertise in helping us get the deal over the line; aided by Greg Totton, our senior underwriter, this made all the difference.”

ARC & CO. ARRANGES BRIDGING LOAN WITH NOVELLUS FOR SCHEME-ENABLING WORKS

Real estate finance advisory firm Arc & Co. has arranged a £2.4 million bridging facility with Novellus to fund the construction of a scheme-enabling access road on a site in Devon, allocated for industrial use.

Arc & Co. secured the facility from Novellus, the specialist bridging lender, reflecting a loan-to-value of 50%, at pricing of 1% per month. The term length is 12 months.

The site, which has outline planning permission in place for the development of several light industrial warehouses, is currently without permanent road access. Under the terms of sales agreements for the individual plots, the road must be completed to base course level.

Dieter Kerschbaumer, asset finance advisor at Arc & Co., said: “The detail involved in this bridge facility made it anything but simple, but we were confident in recommending Novellus’ lending solution that will help unlock the development’s significant value.

“Novellus offered a bespoke solution to our client, underscoring the importance of leveraging a diverse pool of lenders and structuring the funding to meet our borrower’s needs.”

Adam Forman, Head of UK Bridging at Novellus said: “With Novellus being 100% privately funded, we were uniquely positioned to offer the borrower reliability and certainty of capital, in a precarious funding market.  Novellus are delighted to have worked alongside Arc & Co. on this transaction, providing the borrower with funds to carry out the essential infrastructure works to the site.”

The Arc & Co. Group is a specialist real estate finance advisory company based in Fitzrovia, London and operating across the UK, Europe and Asia. Its three divisions – real estate, marine and aviation – allow it to provide specialist advice across a range of financing solutions, including senior debt, equity, leasing and mortgages.

Novellus is an independent, privately funded lender with offices in London and Dublin, offering bridging and term loans with no upper limit and secured across a wide range of property assets - including land (with or without planning), commercial, industrial and/or residential.

ARC & CO. STRENGTHENS TEAM WITH NEW ASSET FINANCE ADVISOR

Specialist real estate advisory firm Arc & Co. has further strengthened its market-leading capabilities with the recruitment of Sam Beaumont as an asset finance advisor.

Sam joins from OakNorth Bank, where he was a debt finance analyst. In his new role he will be working closely with director Tom Berry, focused on delivering commercial, development and bridging solutions for clients.

Based in Fitzrovia, London, The Arc & Co. Group is a specialist asset finance advisory company. Its three divisions – real estate, marine and aviation – allow it to provide specialist advice across a range of financing solutions, including senior debt, equity, mortgages and leasing.

Sam Beaumont, asset finance advisor at Arc & Co., said: “Having previously worked in the debt finance team at OakNorth, experiencing deal execution on the lender side, I am well equipped to work directly with borrowers, using my knowledge to give the best possible service to our clients.

“I’m looking forward to exploring new asset classes and equity solutions, expanding my knowledge of the real estate debt/equity market.

“During such a challenging time in the market, I’m pleased to be able to advise clients when they need it most, providing the confidence and comfort that their assets are in good hands.”

Tom Berry, director at Arc & Co., added: “I’m very pleased to welcome Sam on board. His background working with a bank will be a valuable addition to the team’s collective experience, expanding the breadth of advice we can offer.

“Our team is growing, and we look forward to being able to assist even more clients over the coming months.”

Sam can be contacted via email (sam@arcandco.com) or at Arc & Co.’s London office at 60-62 Margaret Street, London, W1W 8TF.

ARC & CO. DELIVERS 68% LTGDV ON DEVELOPMENT WITH £1.5M-PLUS UNITS

Specialist real estate advisory firm Arc & Co. and Clearwell Capital have completed on a 68% LTGDV facility on a site in Dulwich, London

Arc & Co. and Clearwell worked together to provide a gross loan of £3,265,000 to the developer, whose equity position meant that maximum leverage was required.

While providing the stretched debt, Clearwell was also able to support the high value units—each of the three houses is valued at between £1.5m and £2m.

Particularly in the present environment, it’s commonplace for developers to need to optimise gearing.

Through its unrivalled network and relationships with lending partners, Arc & Co. obtains the desired outcome for its clients, as illustrated in this transaction.

Tom Berry, Director at Arc & Co. said: “Certain lenders find it difficult to support development schemes with high value units.

“However, collaborating with Callum and Harry at Clearwell proved that it can be done—and better still with stretched leverage up to 70% LTGDV.

“It’s hugely positive to see this sort of appetite from funders.”

Callum Ferguson, Head of Business Development at Clearwell Capital, commented: “We are delighted to have completed this development facility with Arc & Co., reinforcing Clearwell’s support for SME property developers in the current climate.

“Following the initial introduction, Tom was extremely professional, communicating effectively with both sides to ensure a smooth completion.

“We look forward to working with the team on future transactions.”

ARC & CO. AND BANQUE HERITAGE STRUCTURE COMPLEX REFINANCE ON CHF 7M SWISS CHALET

Specialist real estate advisory firm Arc & Co. has arranged a new CHF 7 million loan from Banque Heritage to refinance a chalet in Crans-Montana, Switzerland. The loan was arranged on behalf of a HNWI via his Swiss holding company.

Just over half of the facility has been used to repay an existing loan held against the asset and fund renovation works, with the balance providing capital for an investment portfolio to be held and managed by Banque Heritage.

The distinctive 465 sq m chalet occupies a highly prestigious site in Crans-Montana. Located in the French-speaking part of the canton Valais in the southwest of the country, Crans-Montana is one of the most prestigious skiing resorts in Switzerland, regularly featuring in the FIS Alpine Ski World Cup schedule.

Paul Davies, Regional Chairman – APAC at Arc & Co., said: “The international nature of this deal presented a complex set of circumstances, requiring a flexible approach to successfully secure the necessary funding. By working with a Swiss private bank such as Banque Heritage, we were able to take advantage of genuine local understanding to deliver a bespoke solution, with the newly created investment portfolio further deepening the relationship between the two parties. We look forward to working with Banque Heritage on future opportunities.”

Michael Welti, Head of Private Banking at Banque Heritage, added: “One of Banque Heritage’s advantages of being a boutique-sized private bank in Switzerland is the efficiency, agility and speed of execution. With our decades of experience with bespoke solutions to our families and clients, Banque Heritage was not only able to provide a financially beneficial solution to the client, but also efficiently handle all the paperwork and regulatory requirements. Our Senior Bankers truly understand the client centric approach how to serve Entrepreneurs and Executives and offer pragmatic solutions.”

ARC & CO. AND LONDON BELGRAVIA COLLABORATE TO SECURE MORTGAGE ON UNWARRANTIED HOME

Specialist debt advisor Arc & Co., in collaboration with expert defects insurance broker London Belgravia Group, has arranged a new £450,000 mortgage from West One for a barn conversion in Gloucestershire on behalf of a private client.

The client had previously told that the property was unfinanceable due to it being built five years ago without a professional consultants certificate (PCC) or warranty in place. London Belgravia sourced a bespoke warranty, while Arc & Co. liaised with West One to ensure it would be acceptable for mortgage purposes before it was purchased.

As a result of the strategic partnership between Arc & Co. and London Belgravia, the client was able to secure the mortgage at competitive pricing, while parallel sharing of information and valuations mean the loan was agreed to a tight timescale. The mortgage was agreed at 5.44% fixed for five years.

Gareth Briggs, head of UK residential mortgages at Arc & Co., said: “It is hugely pleasing to have arranged a mortgage for a property that the client had previously been told was ‘unfinanceable’. With no warranty or PCC in place, there were significant barriers to be overcome, but thanks to the close working relationship between Arc & Co. and London Belgravia, we were able to reach a result that worked for everyone. We look forward to further collaboration with London Belgravia.”

Giles Fallan, CEO of London Belgravia Group, added: “This deal perfectly illustrates the benefits to clients of the strategic partnership between London Belgravia and Arc & Co. By combining our expertise and collaborating on such deals, we have reached an innovative solution that has resolved an issue that had caused considerable concern for the owner. Our relationship with Arc & Co. is all about combining complementary capabilities, and it is fantastic to see the partnership delivering for clients.”

ARC & CO. ARRANGES £4 MILLION NOTTING HILL MORTGAGE

Specialist debt advisor Arc & Co. has arranged a new £4 million mortgage from a UK-based Swedish private bank to finance the purchase of a family home in Notting Hill, London on behalf of a private client.

The property was acquired for £5.25 million, with the interest only mortgage provided at 76% LTV, with the mortgage structured with an offset facility to allow the clients to utilise funds released from share schemes. The clients also owned multi-jurisdictional assets, with a complex income structure related to share options.

The home is situated on Westbourne Grove, one of the area’s most desirable streets, and offers four bedrooms across ground, lower ground first and second floors, as well as a sizeable private garden, office and self-contained studio room.

Gareth Briggs, head of UK residential mortgages at Arc & Co., said: “The specific circumstances of this mortgage demanded a high degree of trust between all parties. The private bank’s relationship banking model means it had the flexibility and insight to understand the client’s more complex financial requirements.

The Arc & Co. Group is a specialist asset finance advisory company based in Fitzrovia, London and operating across the UK, Europe and Asia. Its three divisions – real estate, marine and aviation – allow it to provide specialist advice across a range of financing solutions, including senior debt, equity, leasing and mortgages.

ARC & CO. ADVISES ABILITY GROUP ON £24.6m LOAN FOR BRISTOL AIRPORT HOTEL

Specialist debt advisor Arc & Co. has arranged a new £24.6 million facility from ASK Partners on behalf of Ability Group, secured against the Hampton by Hilton hotel at Bristol Airport.

The facility is being used to refinance an existing loan and fund an extension to the hotel which will provide a further 50 bedrooms.

In June this year the airport reached a one million passengers per month milestone and has recently received planning permission to undergo an expansion. The expansion includes upgrades to the terminal building, parking and public transport links, allowing for an increase in the annual number of flights departing from the airport and an increase in the total annual passenger capacity from 10 million to 12 million passengers per annum.  The expansion will generate a significant number of new jobs both regionally and at the airport.

Ed Horn-Smith, Managing Director of Arc & Co. said: “Situations such as this, featuring not only the refinancing of an existing facility but also providing development finance to extend a high-performing asset, demand a lender with a firm understanding of the underlying fundamentals and the flexibility to provide a bespoke solution. ASK Partners has a strong track record on deals such as this, and it is fantastic to reach a position that works for all parties. We look forward to working with both Ability Group and ASK Partners on future projects.”

Daniel Austin, CEO and Co-founder at ASK added: “We were delighted to work with Arc & Co. on this transaction to provide Ability Group with the funding required to expand this successfully operated hotel, managed by a well-known brand, in line with the airport’s growth plans. The proposed build, in keeping with the original construction will extend the hotel without disrupting the hotel’s on-going operations. Bristol Airport is the UK’s 8th largest airport, servicing commuters from the Southwest England and Wales. With the increase in travel and terminal side hotel demand post-Covid, coupled with the Bristol airport expansion plans, we felt this was a strong business proposition that we were happy to underwrite.”

ARC & CO. RECRUITS VISHAL DIXIT AS SENIOR BROKER

Specialist debt advisor Arc & Co. has strengthened its team with the appointment of Vishal Dixit as senior broker.

Vishal joins from Pivot, a senior debt lender with a focus on development, where he headed up the origination function since 2017 and was responsible for devising and executing new business strategy, originating facilities of circa £200 million across more than 200 diverse transactions with a GDV of £330 million, with zero capital loss. During his career, Vishal has worked for a number of investment banks and asset management firms including JP Morgan, Morgan Stanley and Schroders Investment Management.

In his new role, Vishal’s focus will be on securing and delivering innovative financing solutions for clients, in particular residential and commercial development facilities. His arrival follows Arc & Co.’s recent unveiling of a new partnership structure, the appointment of James Fleming to the newly-created position of executive chairman and a series of senior promotions – all designed to enhance career development and position the firm for continued growth.

Andrew Robinson, CEO of Arc & Co., said: “Vishal’s considerable experience of the real estate finance market, especially with development facilities, is hugely valuable and will help Arc & Co. provide an even better level of advice and insight to our clients. We are always seeking talent that can complement our innovative, market-leading approach, and Vishal’s arrival underlines our ambitions as we look to broaden our capabilities across not only our existing strengths but new sectors and geographies too.”

Vishal Dixit, senior broker at Arc & Co., added: “Arc & Co.’s reputation in the debt advisory market is second-to-none, and as such it is exciting to be joining the team at a time when it is looking to expand its reach. As borrowers grapple with a range of challenges, the role of top-tier advice becomes ever more important, and I look forward to helping the team continue deliver results for clients.”

The Arc & Co. Group is a specialist asset finance advisory company based in Fitzrovia, London. Its three divisions – real estate, marine and aviation – allow it to provide specialist advice across a range of financing solutions, including senior debt, equity, leasing and mortgages.