Arc & Co. Secures £10m Loan for Residential Development in Derbyshire

Cameron Hayes, Director at Arc & Co. a specialist capital advisory firm, has successfully secured a £10 million loan for a residential development project in Derbyshire. The funding will be used for the construction of 46 houses as part of the project.

The borrower, backed by private equity firm Angelo Gordon, is quickly establishing itself as a leading national housebuilder. Key to securing the loan was prioritizing pricing and speed, with Hayes conducting a detailed tender process to find the optimal funding partner.

In addition to meeting the client’s expectations on timing and costs, the selected lender’s ability to accommodate future opportunities was crucial. This flexibility sets the groundwork for the client to roll additional peak debt developments into the financing 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.”