Arc & Co has arranged a £3.4m BTL facility from Quantum Mortgages for a developer in Worthing, enabling the retention of a portion of a larger residential conversion while refinancing the existing debt.
The client originally acquired a former office building in Worthing, converting it into a block of 120 residential flats.
The acquisition had initially been financed via bridge and mezzanine funding, which now required repayment.
The developer decided to retain 16 of the flats, eight of which were pre-let, as a build-to-let investment to provide ongoing income rather than selling the entire scheme.
The developer subsequently formed a dedicated SPV for the 16 units through new leases and sought a BTL facility that would refinance the existing debt while maintaining a suitable LTV.
Gareth Briggs, head of residential at Arc & Co (pictured above), oversaw a revaluation of the 16 units, resulting in an updated assessment that supported the required leverage.
With this transaction, the client has fully repaid their former bridge and mezzanine lenders and simplified their capital stack, and now holds a self-contained 16-unit lettable portfolio.
Zouhair Mihramane, national account manager for the south east & west at Quantum Mortgages, commented: “It was a pleasure working with Gareth from start to finish on this deal, whereby the applicant was looking for a guaranteed exit on a large development.
“As is the case with multiple units involved, there were many moving parts but nothing — through the assistance of the broker, valuer and conveyancer — we could not overcome.
“Overall, a great outcome for all parties, and I look forward to Quantum and Arc & Co doing more business in the immediate future.”
Gareth added: “This deal underscores how measured structuring and alignment between lender, adviser and sponsor can unlock value even when exit conditions are difficult.
“Quantum was supportive throughout, and we’re pleased to deliver a solution that balances security and flexibility for our client.”
