“It was a pleasure working with Allica on this case. The Allica team was intrinsic to the process.”
– Tom Berry – Arc & Co.
Arc & Co. has arranged a £4.6m bridging finance facility to support the completion and refinancing of a commercial development in Basildon, Essex.
The scheme, which includes office space and industrial units, received funding from Allica Bank at 65% loan-to-value. The facility allows the borrower to refinance their existing development lender while securing the capital needed to complete construction and stabilise the asset.
Arc & Co. director Tom Berry (pictured above) led the transaction, completing the deal within one month of instruction. The structure addressed a more limited appetite among lenders for incomplete schemes made up entirely of commercial space.
By working with Allica Bank, the firm secured terms that give the borrower time to reach full occupancy before moving on to longer-term finance.
Tom said, “It was a pleasure working with Allica on this case. The Allica team was intrinsic to the process. The proposal was slightly challenging, considering the property was completely commercial and required a combination of funds to finish the scheme and time to stabilise.”
“Allica understood the proposal and acted quickly to ensure the client could repay their current development lender in full and have time to continue the scheme.”
The bridging finance structure provides a six-month window for the borrower to complete the build and lease the remaining space. This period is intended to support the transition to a longer-term debt solution once the asset reaches stabilisation.
Stephen Palfreeman, head of sales (bridging) at Allica Bank, said: “I’m delighted to have completed another loan with Tom and the team at Arc & Co, delivering the refinance within just one month of instruction.”
“Tom was fantastic throughout, driving communication effectively between all parties to ensure a smooth and efficient process. This transaction highlights our continued appetite for commercial real estate lending and our commitment to giving borrowers the time and flexibility to stabilise assets before transitioning to long-term finance.”
Several parties supported the transaction:
Charlie Runcorn at Eightfold carried out the valuation
Jonathan Walker provided legal support
The completed bridging finance deal enables the borrower to move forward with construction and leasing, positioning the scheme for longer-term refinancing once fully occupied.
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