The funding will support the initial stages of a 553-bed hotel development in Liverpool.
The specialist debt advisory secured the net loan of £8m against the residual value of the business plan, and the initial works will be followed by extensive refurbishment.
Planning consent has been granted to convert a part-vacant, eight-storey office and retail building into a 125-suite hotel.
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Once trading, the hotel is expected to have a projected value of over £30m, with the building currently valued at £13m.
“This was a very interesting transaction given the intuitive response by my clients to reposition this asset,” said Charlie Armstrong, asset finance adviser at Arc & Co (pictured top).
“Securing a leveraged position against the residual value of this consent shows that there are solutions to the evolving nature of the tertiary office/retail market.
“Ultimately, it comes down to the strength of the business plan, so kudos to my clients for their delivery of this opportunity.”