Specialist capital advisory firm Arc & Co. has completed a £12m funding deal for the acquisition of a large-scale pub portfolio in Wales.
The facility, arranged by director Cameron Hayes, will support the purchase of 88 public houses spread across South and West Wales. The portfolio comprises 83 long-leasehold assets, alongside three freehold properties and two leaseholds held on peppercorn rents.
Hodge Bank provided the loan, which is structured on a fixed-rate basis over a three-year term at 60% loan-to-value. Despite the granularity of the portfolio, the lender was able to move quickly, aided by existing reports from Savills, who were already familiar with the asset pool.
Arc & Co. conducted a competitive tender process, ultimately identifying Hodge as the preferred lender in terms of pricing and execution. Credit approval was secured within two weeks of heads of terms being agreed, with legal completion finalised in under three months.
Hayes described the transaction as “a great completion to get across the line for the fund,” adding that it demonstrated the firm’s ability to deliver complex refinance deals in a challenging market. “All sides maintained clear communication throughout,” he said, “ensuring a smooth completion and establishing a solid foundation for the client’s future financing requirements.”
The borrower, Brew Propco, was advised by Hayes throughout the process. The deal adds to a growing tally of over £40m in recent facilities arranged by him, covering residential and commercial sectors, including bridging, development and term loans.
Gareth Davies, senior business development manager for real estate finance at Hodge, said: “It’s been a pleasure working with James and Adam at Brew Propco and great to complete another deal with Cameron at Arc & Co. As a Cardiff-based real estate finance provider, we’re particularly proud to have supported a deal of this scale, investing in pub real estate across South and West Wales.”
He added: “Public houses are a key part of the social fabric of many communities, and this deal demonstrates our commitment to the leisure and hospitality sector as well as our support for real estate investment in the region.”
