The facility will fund both the purchase of the property and the delivery of two additional airspace storeys, along with a full refurbishment of the building, which currently contains 18 apartments.

The two new upper storeys will be constructed offsite and installed in parallel with refurbishment works.

HTB provided a single facility to fund the acquisition, refurbishment and airspace construction, completing the deal in less than two months from receipt of reports.

Galloway Hughes and Brechers LLP advised the client and HTB, respectively.

Andrey Redman, director at Arc & Co, said: "This project represents the kind of creative thinking we are proud to support.

“From day one, we worked closely with the borrower to deliver a funding solution that aligned with both their timeline and their vision.

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“HTB was collaborative and pragmatic and delivered with purpose, making it an ideal partner on this transaction."

Rob Syrett, head of origination at HTB, commented: "This is a strong example of the kind of deal we are seeing more of in inner London, where acquisition, refurbishment and vertical development need to be considered together.

“Airspace brings both opportunity and complexity, and it is essential to work with advisers who understand what a scheme needs to succeed.

“Arc & Co brought that insight to the table and it was a pleasure to work with them again."

Neil Leitch, managing director of development finance at HTB, added: "Airspace development is increasingly important in London, particularly when supported by modern methods of construction and a clear planning strategy.

“These projects often carry more complexity than ground-up schemes, but they can deliver real value when approached intelligently.

“It was a pleasure to support this project and work in partnership with Arc & Co."