This facility, for the development of eight flats, comprises £2.9m senior debt and a £857,000 mezzanine loan.

Arc & Co advisor Sam Beaumont secured the loan for the client, achieving 83% LGTDV.

This will cover most of the costs of the borrower, an experienced London developer and repeat client of Arc & Co.

The £2.9m development facility was delivered at 65% LTGDV for 18 months, with the mezzanine loan of £857,000 secured at 83% LTGDV for 12 months.

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With the latter, the mezzanine funder also took equitable charges to satisfy the LTV required.

The process took seven months in total with Sam revealing a lot of work was required to find the best funding parties for this complex deal.

“We’re pleased to have paired two lenders who have a good relationship—often an inherent challenge when working with more than one provider in the capital stack—and who could come together to support our client with the necessary funding,” added Sam.

“Overall, the solution will see the client able to complete the project and maintain their equity position.”