Specialist real estate advisory firm Arc & Co. has arranged a £16.7m loan for a repeat client, secured against an industrial asset in South London.
The funding, provided by private credit lender Atlas Capital Partners, was structured to refinance the existing construction facility and support a lease-up strategy aimed at maximising the asset’s long-term value.
The 24-month term loan was agreed at 78% loan-to-value. Arc & Co. director Cameron Hayes led the transaction, negotiating commercial covenants that allowed the sponsor to achieve high day-one leverage. The initial interest period is being paid in kind to support near-term cashflow management.
The firm said the deal reflects sustained investor demand for London industrial assets, despite broader market caution. While occupational demand in the sector remains robust, lease-up and exit strategies can take up to a year, particularly where assets are marketed for stabilisation and sale. The structure of the facility provides the client with time to complete lettings and realise the asset’s full value.
Hayes said: “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.”
CBRE’s industrial valuation team advised on the asset valuation, with DMH Stallard and Pinsent Masons acting as legal advisers. The transaction completed within 10 weeks of the initial lender review.
