Arc & Co completes £35m loan purchase




Arc & Co has arranged a £35m loan purchase for a client.

The facility, which formed a like-for-like debt purchase, is secured against a UK PBSA portfolio.

The purchase from an undisclosed US special situations fund — which is said to be actively seeking similar UK opportunities — will enable the borrower to stabilise occupancy while the income from the assets recovers post-Covid-19.

Edward Horn-Smith, managing director at Arc & Co (pictured above), said: “The replacement of the senior debt provider by way of loan purchase enabled a quick solution with less transactional risk for the borrower.”

He explained that the reason for choosing a loan purchase instead of an asset refinance was due to the need for speed and simplicity, as a loan purchase doesn’t involve the timely process of re-issuing documentation and sorting new intercreditor deeds.

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