Arc & Co. has completed a bridging loan worth €11.1m on two chalets and land with planning in a mountain resort in France.
The client was introduced to Arc & Co’s CEO Andrew Robinson via a wealth manager.
Robinson (pictured) first worked with the borrower a year ago on a bridging loan to secure the land surrounding the chalets. Since then, planning has been achieved, and the land has now been valued at £28m—ready to be sold for development into a hotel.
Robinson looked for a lender to refinance the existing bridge, therefore allowing the borrower time to sell. The lender was required to consider the independent value of both of the chalets as well as the land with planning.
Robinson said: “This was one of the more difficult points to cover as not many lenders in the location would look at both values. We had a 75% day-one on the current residential usage but combined with the residual land value of the hotel, the LTV came down to 40%.”
Specialist bridging lender Brydg was selected as they have the requisite local market knowledge and capabilities to understand the structure—which was imperative to get the deal closed. The client had changed the structure from a Luxembourg holding company to a French SCI which added complexity during underwriting.
ADDED COMFORT
In addition, Robinson negotiated for Brydg to have a ‘golden’ share in the French SCI to enhance their security on the loan structure.
The €11.1m loan was completed in six weeks from signing and was priced at 1% pcm.
Robinson added: “Due to the valuation, structure, and location, there were not many lenders that would consider this deal—it was very specialised.
“The French legal system is complicated, and it was a challenge working with a raft of lawyers and notaries. Communication was key, so all-parties calls had to be held at least weekly so we could manage the process to completion.
“Our experience and in-depth lender relationships means that we can step in and assist with international cases, providing the necessary case management to keep all aspects moving.”
