Arc & Co. secures £10m development loan for 46 houses

By Bridging Loan Directory 20th January 2025

Cameron Hayes, Director at specialist capital advisory firm Arc & Co., has secured a loan of £10m for a development in the Midlands.

The peak debt facility of £10m will fund the development of a residential scheme of 46 houses in Derbyshire.

The borrower has PE backing from Angelo Gordon and is emerging as one of the leading national housebuilders.

The primary priorities were pricing and speed, and Cameron conducted a thorough tender to determine the best funding partner for the deal.

In addition to meeting the client’s expectations around time and costs, the chosen lender’s capacity to look at future opportunities was an important factor, establishing a framework to enable the client to roll multiple peak debt developments into this structure.

The site was purchased from one of the landed estates and required a license agreement with the estate which led the bank and solicitors to carry out an additional level of due diligence.

The deal took three months to complete and was delivered at 65% LTGDV, with a gross facility of £10m and for a term of 24 months.

The deal is inclusive of a peak debt/revolving credit facility of £7m, enabling the client to manage interest costs.

Cameron commented:

“As this was the client’s first banking relationship, it was vital that we undergo a full market search, comparing terms and returns to the client.

“The lender in question is reliable and meets not only the current requirements of this emerging national housebuilder, but can support future opportunities, too.

It’s our job to ensure that communication and processes run smoothly, paving the way for a successful borrower-lender relationship going forward–and we have achieved that.

We look forward to working closely with the housebuilder on their journey to deliver 1000+ units over the next 18 months.”