Arc & Co. has successfully closed a £4.7m development loan for a sustainable project in Macclesfield.
- The development spans 2.5 acres and includes 15 homes and flexible workspaces.
- A farm shop supporting local vendors will enhance the project’s community focus.
- The 70% LTGDV facility is designed with a term of 20 months at a competitive rate.
- This deal marks a new collaboration for the family developer, advised by Sam Beaumont.
Arc & Co. has achieved a significant milestone by securing a £4.7m development loan for a pioneering project in Macclesfield. The development, centred around sustainability, will cover 2.5 acres and introduce 15 new homes along with flexible workspaces that cater to both private offices and co-working needs. A key feature of the project is a farm shop, poised to support local, independent vendors, thereby fostering a community-centric environment.
The financial arrangement for this ambitious project is structured as a 70% loan-to-gross-development-value (LTGDV) facility. It carries a term of 20 months and is priced at a rate of 5.65% plus the base rate, aligning with competitive commercial lending trends. This structure not only provides substantial financial backing but also integrates flexibility to accommodate the developer’s evolving needs.
For the family business behind this development, this transaction marks a departure from their traditional approach of dealing directly with lenders. Sam Beaumont, an adviser at Arc & Co., orchestrated a stretched senior option that proved more favourable than a conventional senior facility paired with a mezzanine loan. This innovative approach meant fewer associated fees and reduced complexity with one less party involved, highlighting Arc & Co.’s value in the financial planning process.
Reflecting on the transaction, Beaumont expressed enthusiasm for having secured this business despite the developer’s pre-existing relationships with other funding providers. He noted that Arc & Co.’s expertise brought significant value to the deal. Throughout the negotiation, the deal’s structure underwent various modifications, yet the lender maintained a pragmatic outlook, working collaboratively with all parties involved to achieve a successful outcome. Beaumont conveyed his excitement over negotiating a deal for an award-nominated development, expressing hope for ongoing collaborations with both the client and the borrower in the future.
This innovative development sets a benchmark in sustainable community-oriented projects.
