Arc & Co has arranged a £4.6m finish and exit bridging loan for a part-complete commercial scheme in Basildon, giving the borrower six months to complete the build and lease the asset before moving onto longer-term debt.
The funding, provided by Allica Bank at 65% loan-to-value, was used to refinance the borrower’s existing development lender and provide capital to finish the scheme, which comprises office space and industrial units.
The transaction completed within one month of instruction and was led by Tom Berry, director at Arc & Co.
The case involved a fully commercial, incomplete development — an area where funding appetite can be limited. Arc & Co said the structure was designed to give the borrower time to complete the remaining works and stabilise the property through full occupancy.
The deal points to continued demand for short-term funding in situations where developers need both a refinance and extra time to complete and let schemes before seeking longer-term finance.
Berry (pictured) says: “It was a pleasure working with Allica on this case. The Allica team was intrinsic to the process.
“The proposal was slightly challenging, considering the property was completely commercial and required a combination of funds to finish the scheme and time to stabilise.
“Allica understood the proposal and acted quickly to ensure the client could repay their current development lender in full and have time to continue the scheme.”
Stephen Palfreeman, head of sales (bridging) at Allica Bank, says: “I’m delighted to have completed another loan with Tom and the team at Arc & Co, delivering the refinance within just one month of instruction.
“Tom was fantastic throughout, driving communication effectively between all parties to ensure a smooth and efficient process.
“This transaction highlights our continued appetite for commercial real estate lending and our commitment to giving borrowers the time and flexibility to stabilise assets before transitioning to long-term finance.”
Other parties involved in the transaction included Charlie Runcorn at Eightfold, who handled the valuation, and Jonathan Walker, who provided legal support.
With funding now in place, the borrower has a six-month period to complete the remaining work and fully occupy the scheme before seeking a longer-term lending solution.
