Arc & Co has structured a £4.7 million funding package across three linked facilities to help a property investor refinance a maturing loan, steady an existing portfolio and release capital for further acquisitions.
The deal centred initially on an urgent refinancing requirement tied to a buy-to-let facility that was close to maturity.
The key asset was a 16-unit residential block held under a single freehold. However, a recent down valuation of £400,000 had put pressure on leverage and narrowed the borrower’s refinancing options.
Arc & Co, led on the case by senior broker Corey Dennis, arranged a £2.9 million bridging facility at 75% loan-to-value. The funding was based on the aggregate market value of the individual units rather than a reduced block valuation, allowing the refinance to proceed despite the lower valuation.
That structure enabled the existing facility to be redeemed and gave the client breathing space on the residential element of the portfolio.
Arc & Co then moved on to a broader refinancing of two further assets in order to release equity and support expansion plans.
Two five-year fixed-rate facilities were arranged across semi-commercial and commercial properties, totalling just over £1.9 million. Both were structured at 73% loan-to-value against vacant possession value, with pricing agreed at 6.25% and 7.6% respectively.
The firm said the facilities were also arranged at 73% gross to vacant possession value with fees added on top, helping the borrower maximise leverage and extract capital from the portfolio.
According to Arc & Co, the funding repaid the existing lender in full and generated enough equity to support the acquisition of two new development sites.
The transaction underlines continued demand for more tailored funding structures in cases where valuation changes or portfolio complexity can limit the options available through more conventional refinancing routes.
Dennis says: “From the outset, this was about more than simply refinancing an existing facility, it was about protecting the client’s position and creating a clear route forward.
“Despite the down valuation, it was key to approach a lender that would accept the aggregated value of the individual units. This ensured the existing facility could be redeemed and provide stability.
“We were then able to refinance the wider portfolio, release additional capital and support the acquisition of two new development sites. It’s a strong example of how the right funding strategy, delivered in stages, can turn a pressured situation into a platform for growth.”
For Arc & Co, the case illustrates how bridging and term debt can be combined across multiple assets to address an immediate refinancing issue while also supporting a borrower’s wider investment plans.
