“This was a great example of a lender taking a pragmatic view on a strong regional asset and supporting a client with a clear growth strategy”
– Philip Kay – Arc & Co.
Arc & Co. has announced that it has successfully structured a £1,485,000 Commodity Murabaha (CM) facility on behalf of an established client, secured against an unencumbered regional office building in Nottingham.
The facility was provided by Habib Bank Zurich plc (HBZ) through its Intermediaries Team.
The property, currently occupied by two tenants, was undergoing lease re-gearing at the time of execution. The borrower sought to release equity to support a pipeline of development projects.
Despite the leases being held over, HBZ’s Intermediaries Team took a commercial and flexible approach, offering terms that reflected the asset’s underlying strength and income profile.
The transaction was structured under an Islamic financing arrangement, with a profit margin of 2.75% and an FTV of 55%. As part of the Commodity Murabaha facility, there were no early repayment charges.
During the process, the bank requested longer-term lease commitments, preferring three- and five-year terms to provide additional security. Philip Kay, director at Arc & Co., negotiated with HBZ to accommodate the shorter leases, a stance that is uncommon for regional office assets.
“This was a great example of a lender taking a pragmatic view on a strong regional asset and supporting a client with a clear growth strategy. The Intermediaries team (notably Fahad Khan) at Habib Bank Zurich plc maintained excellent communication and follow-up throughout the process and demonstrated flexibility in providing an Islamic facility where other lenders may have struggled with the short lease terms,” said Philip Kay, director at Arc & Co (pictured).
“Philip has conducted himself with exceptional professionalism throughout the transaction, truly embodying the values and ethics of Arc & Co. from case submission to completion. We greatly appreciate his approach and look forward to working with him—and the wider Arc & Co. team—on future opportunities,” said Fahad Sartaj Khan, senior relationship manager at Habib Bank AG Zurich.
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