The funding, provided by Atlas Capital Partners, was used to refinance the existing construction loan and to support the sponsor in executing the lease-up strategy for the asset.
The facility is provided on a term of 24 months at 78% LTV.
Arc & Co negotiated the commercial covenants in the facility, enabling the client to secure the highest net day-one leverage for refinance, while having the first period of interest paid in kind to help with cashflow.
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The process was implemented within 10 weeks of initial review, partnering with CBRE’s industrial valuation team, and DMH Stallard and Pinsent Masons advising on the legals.
Cameron Hayes, director at Arc & Co, commented: “This is a great example of private credit entering the commercial sector to bridge the gap between traditional development finance and term finance.
“Traditional banks’ appetites to support complex commercial funding requirements, especially those without tenants in place and requiring a period to lease up and stabilise, remains constrained.
“We’re able to tap into liquidity for a variety of scenarios, structuring deals that enable commercial clients to see out their business plans and prosper.”
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