Specialist debt advisory firm Arc & Co. has arranged a £3,562,500 buy-to-let loan secured against a portfolio of 19 newly developed apartments in Kent, all of which are fully leased to the local council under a long-term agreement.

Originally designed as a build-to-sell scheme, the development transitioned to a build-to-rent model following an agreement with the local authority to lease the entire block for a fixed term of five to 10 years.

The structured lease provides a guaranteed income stream, allowing the borrower — a UK national with international roots — to refinance the asset, repay early investors and unlock equity for further expansion.

The loan, which represents a 70% loan-to-value ratio over a five-year term, was arranged by Nikita Nigai, head of international at Arc & Co., who had previously supported the same borrower’s entry into the buy-to-let market in 2022.

Nigai said that securing favourable terms on this transaction involved navigating a range of challenges, including the borrower’s limited development track record, conservative lending criteria from traditional banks and heightened scrutiny of international backgrounds. However, Arc & Co. was able to deliver a funding solution by leveraging its lender relationships and sector expertise, he said.

“It is vital that we have access to lenders who have the appetite to support complex borrowers and property types, while remaining competitive on price,” said Nigai. “Returning clients feel the benefit of having a specialist adviser in their corner, helping to achieve the best possible terms as they grow and expand.

“This deal is a great example of how strong lender relationships and market insight can help clients achieve their goals, even in a shifting economic environment.”

The apartments are held under a UK special purpose vehicle and fully leased to the council, offering stability and legitimacy from the outset.