"Although Arc & Co. has a sizeable network of providers to tap into, every case and borrower is unique and we always conduct a full and thorough tender to find the most appropriate funder for the specific circumstances at hand"
- Sam Beaumont - Arc & Co.
Specialist debt and equity advisory firm Arc & Co. has completed a complex development facility for a pre-existing site in Acton.
Sam Beaumont (pictured), Advisor at Arc & Co., has secured a loan of £3.85 million for the development of 8 flats split into £2.99m of senior debt and an £857,000 mezzanine loan.
Across the funding package, Sam achieved 83% LTGDV, covering most of the costs for the borrower, an experienced London developer and repeat client of Arc & Co.
As part of the structuring, the mezzanine funder also took equitable charges in order to satisfy the LTV required. Sam sought the best lender pairing and most competitive pricing possible for this high-leverage case.
Over the course of seven months, Sam took on a central role in the transaction and kept the deal on track, specifically in regard to the communication between solicitors.
Despite the challenges, the development facility of £2.9m was delivered at 65% LTGDV for 18 months, with the top-up mezzanine loan of £857,000 at 83% LTGDV for 12 months.
Sam commented: “Finding a suitable mezzanine or equity partner was a very long process that included many calls and introductions between parties. Although Arc & Co. has a sizeable network of providers to tap into, every case and borrower is unique and we always conduct a full and thorough tender to find the most appropriate funder for the specific circumstances at hand.
“We’re pleased to have paired two lenders who have a good relationship—often an inherent challenge when working with more than one provider in the capital stack—and who could come together to support our client with the necessary funding.
“Overall, the solution will see the client able to complete the project and maintain their equity position.”
