Arc & Co structures multi-million loan for acquisition of residential block in Borehamwood

The deal comprised a £12m, five-year fixed-rate senior investment loan provided by Aldermore at 70% LTV, and an £8.3m second-charge facility with a profit share element from a second lender.

Following the acquisition, the developer will be applying for planning permission to expand the existing scheme with 66 additional units. 

The sale of the new units forms the backbone of the client’s exit strategy. 

Philip Kay, senior asset finance adviser at Arc & Co (pictured above), said: "This is a well-located residential asset, which our developer client has identified for its upsizing potential in the local market. 

“The resulting scheme will complement the local area and we look forward to working on the development facility once planning for the additional units is granted.

“I'd like to thank both lenders for their support on this transaction."

Ian Sutton, senior lending manager at  Aldermore, added: "It is an exciting deal with Aldermore providing the senior debt, enabling the acquisition of a quality residential asset; this was an excellent collaborative approach from all parties.

“The deal showcases Aldermore's ability to create long-term funding partnerships aligned with a borrower’s strategy, and brilliantly demonstrates our bespoke and flexible approach, combining both investment and development finance.”

In June, Arc & Co has also secured a £3.5m loan from Reim Capital for a client looking to acquire a retail warehouse unit in north east England.