The loan — which comprised senior debt of just under £6.2m from Paragon Bank, and £651,000 worth of mezzanine finance — will be used by specialist residential developer Kentish Projects to convert a hotel into 19 flats.
The town centre scheme is within walking distance from Tunbridge Wells Railway Station.
The deal was initially credit approved by two different lenders, however, due to the Covid-19 pandemic, both lenders were unfortunately no longer in a position to lend, which was when Paragon stepped in.
The loan was provided on a 21-month term at 84% LTV on day one (across both loans), with an overall LTGDV at 72%.
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Adrian Reeves, relationship manager at Paragon Bank, said it was delighted to work with Arc & Co again.
“We have remained committed to lending despite the Covid-19 pandemic, and this has enabled us to support another experienced new-to-bank client and allow them to continue developing.”
The deal was led by Jeremy Robinson, asset finance adviser at Arc & Co (pictured above), who commented: “The ability to not only structure the loan during difficult market conditions but also complete against the given deadline, is testament to the client — a proven developer — as well as the prime location of the redevelopment site.”
Chris Lynch, director at Kentish Projects, has worked with Jeremy over the past 18 months across various projects.
“It has been fantastic to get this one over the line,” Chris commented, adding that this had allowed it to make headway with the development.
“The level of gearing secured enables us to progress with other projects, which is in line with our yearly plan and growth ambitions.”