Tuscan Capital & Arc & Co complete funding of £6.8 million high-leverage deal for luxury properties in Cheshire

By Bridging Loan Directory 30th July 2024

Tuscan Capital, the short-term property finance specialist, has today (30^th July 2024) announced the funding of a £6.8 million deal for five luxury, multi-unit residential properties in Cheshire.

This transaction, introduced by Arc & Co, was completed at 75% LTV and Tuscan said it underscores its expertise in high-leverage funding.

The purpose of the loan was to repay the existing lender and raise finance to complete another scheme within the developer’s portfolio.

Some of the properties were funded pre-practical completion, with multiple exchanges and offers already secured.

The client, an experienced developer active in the region since 2010, faced delays due to supply chain issues and rising material and other costs over the past two years.

Tuscan said its flexible approach enabled the developer to refinance the existing lender and gain time to sell the units, providing a tailored financial solution.

The lender said this successful transaction was part of a record-breaking first half of the 2024 with multiple deals funded across a range of asset classes, covering residential, semi-commercial, and commercial properties.

Tuscan said it has a robust appetite for acquisitions, refurbishments, and development exit deals.

Tuscan Capital provides non-regulated bridging finance to the residential, commercial, semi-commercial, HMO and mixed-use real estate sectors in England and Wales.

Stephen Palfreeman, Associate Director at Tuscan Capital, commented:

“When receiving a deal involving multiple properties before practical completion, it is vital to get a good background and information flow of what the situation is.

Arc & Co always put together a detailed and thorough submission when sending in their deals, and this one in particular allowed us to shape our view of the deal at an early stage.

We specialise in high leverage solutions for developers, and offering 75% LTV (not being restricted to 90/180-day figures) allowed the client to refinance the existing lender and give time to sell the units.

We have worked with the Arc & Co team for a number of years and look forward to completing more deals over the next few months together.”

Colin Sanders, CEO at Tuscan Capital, added:

“Our product range has allowed us to compete across a broad range of deals this year.

Our development exit proposition has been used to particularly good effect with many developers needing to recalibrate their funding structure.

By refinancing senior development debt and investor’s equity or Mezz, our development exit bridge provides the time required for developers to maximise the sales of the finished product without being penalised by an overdue capital stack.

This deal is a perfect example, which given the quality of the finish and its location has already proved to be in high demand and is likely to sell well above valuation.”

Cameron Hayes, Director at Arc & Co, said:

“Despite a recovering sales market and the relative stabilisation of the issues which have plagued developers for the last few years, there remain clients who need to refinance or consolidate their debt on projects or portfolios that have been impacted.

It’s vital to have the support of commercially-minded lenders like Tuscan, who are willing to provide higher leverage to borrowers that require it.

We are there for our clients throughout the various market cycles, and Tuscan have proven to be a funding partner who align with that commitment.”