Arc & Co. has successfully secured a substantial development loan for a project in Macclesfield.
- The £4.7m loan is aimed at a 2.5-acre sustainable development including homes and workspaces.
- This initiative includes residential homes, flexible workspaces, and local vendor-supported farm shop.
- The development loan features a 70% loan-to-gross-development-value with competitive loan terms.
- The project highlights the collaboration between a family-run developer and the expert advisors at Arc & Co.
Arc & Co. has efficiently closed a £4.7 million development loan for a significant new project based in Macclesfield. This financing will support the creation of a sustainable 2.5-acre development designed to combine residential and commercial spaces effectively. The project includes 15 new homes and a flexible workspace solution that offers both private offices and co-working spaces, along with a farm shop designed to accommodate local vendors.
The loan represents 70% of the gross development value and has been agreed upon for a period of 20 months. This financial arrangement comes with an interest rate fixed at 5.65% above the base rate. Such terms provide the developer with a favourable financial framework that simplifies the borrowing process and minimises additional costs.
A noteworthy aspect of this transaction is the developer, a seasoned family business, engaging with Arc & Co. despite having an established network of lenders. Historically taking a direct approach to borrowing, the developer found value in Arc & Co.’s proposal for a ‘stretched senior’ loan option rather than pursuing a combination of senior and mezzanine loans. This approach notably reduced the number of parties involved and consequently lessened the overall fees.
Sam Beaumont, a key advisor at Arc & Co., expressed satisfaction with the successful negotiation, citing the pragmatic stance of the lender during the various stages of deal restructuring. It is a testament to the knowledge and expertise that Arc & Co. brought into this project, making it appealing to developers who might otherwise follow traditional borrowing routes.
The project itself is notable for its commitment to sustainability and local community support, showcasing an innovative mix of residential and business spaces that align with contemporary demands for adaptable work environments and community-oriented amenities.
The collaboration between Arc & Co. and the developer stands as a promising example of innovative financial solutions in sustainable development.
