The property will be refurbished to a Cat-A specification, with mechanical and electrical systems upgraded to target an EPC A rating and BREEAM score of Excellent.

Downing was able to add the VAT to the facility, removing the need for a separate VAT loan, simplifying the deal structure in terms of timing and intercreditor arrangements.

With a site visit completed in March 2025, there was a tight window required to secure the acquisition.

Dieter Kerschbaumer, asset finance adviser at Arc & Co, commented: “This was a landmark asset with obvious potential, especially given the shortage of new Grade A stock in the market, so it was important to explore all approaches to get this exceptional deal structured.

“The client is a specialist permitted developer, and this was their first office development.

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“My background as a quantity surveyor meant I was able to communicate to the funders that the scope of works was well within their capability.

“The developer was extremely versatile, and their proactive approach was instrumental in maintaining momentum.

“Downing was excellent throughout the process; Will Powell [investment director at Downing] played a significant role in getting the deal across the line.”

Will commented: “Having known and worked with the team at Arc & Co for over 10 years now, it was great to complete on such a specialist transaction for an excellent client in the sector.

“The deal involved a number of complexities not concurrent with a typical funding arrangement and the team involved exhibited first-class capability in getting it done.

“Against a backdrop of sustained market challenges, this deal went against the grain, and it is a pleasure to be involved.”