Arc & Co., a real estate finance advisory firm, has successfully orchestrated a £9.5 million bridging loan. This substantial sum was secured to assist a private international client in acquiring a high-end apartment in the heart of London. Here’s a breakdown of what this deal means and how it was achieved.
The focal point of this transaction is a luxury apartment situated within the OWO Residences on Whitehall, overseen by the prestigious Raffles hotel group. This location is known for its opulence and exclusivity, making it a coveted piece of real estate.
The Bridging Loan Explained
A bridging loan, for those unfamiliar, is a short-term finance option often used in real estate to ‘bridge’ the gap between needing funds for a purchase and securing more permanent financing. In this case, Arc & Co. secured the loan from West One, a financial institution known for such services.
Loan Terms and Details
- Amount: £9.5 million
- Duration: 12 months
- Interest Rate: 1.15% per month
Behind the Scenes
Nikita Nigai, a private client advisor at Arc & Co., highlighted the urgency of the situation. As the completion date for the purchase neared, the client found themselves unable to secure long-term finance. Typically, developers don’t wait or grant extensions, posing a significant challenge.
To navigate this, Arc & Co. devised a plan to initially use a bridging loan, with intentions to refinance it into a term loan later. They are already in talks with several banks interested in providing the term debt.
Nigai emphasised the importance of presenting complex deals effectively from the start, especially when the Ultimate Beneficial Owner (UBO) is involved. His expertise in the market allowed him to manage client expectations by outlining potential risks and opportunities.
Michael Grant, Head of Sales – Bridging and Development Finance at West One, commended Nikita’s tenacity and expertise. He stressed the importance of clear communication and attention to detail in executing large deals. Grant also acknowledged Greg Totton, their senior underwriter, for his role in facilitating the deal.