Arc & Co has secured a £5.76 million commercial term facility from State Bank of India to refinance an open storage asset in Epping, Essex, for a repeat developer client.
The three-year loan was agreed at 65% loan-to-value, with a fixed rate of 6.55%.
Arc & Co said the funding was used to refinance existing development finance and release equity to support the borrower’s wider investment property portfolio.
The transaction was led by Tom Savill, asset finance advisor at Arc & Co, who worked with the client on a deal involving an open storage site of more than five acres of secured yard space.
According to the broker, the site’s income profile did not meet the usual debt service coverage ratios required by many traditional lenders. The facility was therefore structured with a small interest reserve to support serviceability while the client seeks to increase lease revenue.
Savill (pictured) says: “This transaction demonstrates our ability to secure competitive terms for specialized asset classes that often fall outside the typical lending criteria of high-street institutions.
“Understanding the nuances of open storage was key to this deal. By effectively communicating the long-term value of the asset and structuring a bespoke interest reserve, we were able to deliver a solution that met the client’s equity release goals.”
The deal completed within three months, with Arc & Co saying State Bank of India was accommodating throughout the process.
