Arc & Co. close 80% LTV development exit facility against high value London assets
Arc & Co. have successfully completed a £3.7 million marketing bridge loan with two private lenders, secured against two, large new-build houses in the Royal Borough of Greenwich, South-East London.
The loan, which included senior finance of just over £3.1 million and junior debt of £460,000, had a blended rate of less than 0.9% per calender month. The loan was also structured with minimal arrangement fees to ensure the greatest possible Day 1 lend to the client.
Sam Le Pard, pictured, Asset Finance Advisor at Arc & Co., commented:
“This loan was essentially a microcosm of what we are seeing in the market at the moment. Our developer clients are continuing to build great properties but, because of the slightly slower sales market, are needing a little longer to sell them.”
“There are hundreds of bridging lenders in the market and they cover all of the possible niches you can imagine. With this deal, we structured debt with two lenders who have deliberately moved into the high-value property space. These lenders are doing really well at the moment and building their market share. Other lenders are tending to favour properties in the Help-to-Buy range, where there is more competition and therefore lower returns.”
“Ultimately, the bridging market is probably (nearly) as diverse as the property market these days. So although higher value properties aren’t very popular with certain lenders at the moment, for others, this has become their bread and butter.”