Arc & Co. and Delancey complete £19.5m property acquisition bridge

Arc & Co. and Delancey Real Estate have closed a senior secured three-year, fixed rate £19.5m facility to assist a London-based developer with the acquisition of an existing office in St James’s.

The deal is expected to be the first of many in a market which Delancey believes will be an opportune time for its lending business, given the current retreat of traditional financing sources which are further increasing the need for alternative lenders. 

The St James’s based property in London’s West End is a prime freehold, 16,000 sq ft mixed-use asset.

The developer intends to carry out a comprehensive refurbishment of the property once proposed planning has been achieved.

The debt package represents an LTV of around 70% with the ability for the developer to request capital for the refurbishment.

Philip Kay, director at Arc & Co. said: “We were delighted to be given the opportunity to work with two excellent counterparties. 

“On the sponsor side, the developer’s investment thesis is very robust with investments targeted in strong London locations.

“In a difficult environment for 2023, we were also pleased to work with Delancey as a competitive and flexible capital provider with strong appetite for the asset class and business plan.

“We look forward to working together with both parties in the near future.”   

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