Arc & Co. has completed a £2.675m investment loan secured against an industrial asset in Bristol, arranged with Habib Bank.

The transaction was led by Sam Beaumont, asset finance advisor at Arc & Co., and involved a number of challenges linked to both the property and the borrower.

The industrial site was subject to a six-month rolling lease, providing limited covenant strength and income certainty and increasing risk for the lender. In parallel, the borrower operated through a complex tax structure, which required enhanced due diligence and careful structuring during underwriting.

Despite these issues and a protracted approval process, Habib Bank adopted a flexible and pragmatic approach to the deal.

Beaumont said: “Negotiations between the tenant and borrower were aggressive and took some time, but Habib were patient throughout the process and amended terms to reflect the changing position which gave the borrower comfort but also flexibility on the details of the lease.

“Habib also worked with the client on background income to support the loan in lieu of tenant security.

“They took a cash lien up front to account for a potential vacancy period and were happy to consider other sources of income being accessible in a worst-case scenario.”

The loan totals £2.675m and was agreed at 55% LTV, priced at 2.5% over base. The three-year term carries no early repayment charges under Habib Bank’s Islamic finance product.