ME Developments has secured the funding for its £25m GDV project, which will consist of two mixed-use towers comprising 53 apartments and 7,000 sq ft of offices, opposite Isleworth Station.
Due to the scheme’s healthy profitability, Arc & Co was able to structure the loan — at 67% LTGDV and 83% LTC — while maintaining a competitive financing cost.
Arc & Co introduced London Belgravia Brokers to ME Developments in order to arrange structural warranty cover for the project.
London Belgravia Brokers also offered exclusive payment terms, which allowed ME Developments to secure the warranty with a 20% down payment and remaining premium spread over the 10-month build period.
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A golden brick payment is payable on the affordable housing — which ME Developments has to exchange on prior to completion — where a sale has been agreed with L&Q.
“It was excellent to work with both ME Developments and Octopus Real Estate on completing this loan, which will be the first stage in achieving ME Development’s growth plan,” said Cameron Hayes, asset finance adviser at Arc & Co.
The Surrey-based developer has plans to build over 1,000 houses and apartments with a value of over £400m over the next three years, with an aim to expand across the Home Counties and outskirts of London.
Jamie Milne, senior broker and head of desk at London Belgravia Brokers, added: “We are delighted to support ME Developments on this new scheme, which will create much needed modern homes in the South East of the country.
“We have been very impressed by its projects in the past and are pleased to be assisting it in delivering its impressive pipeline of projects.”
Simon Marshall, founder and CEO of ME Developments, commented: “It was a pleasure working with Arc & Co and Octopus Real Estate on this complex transaction in order to help us achieve our 1,000 homes in 36 months target.
“Arc & Co’s best-in-class financial advice, coupled with the firepower of Octopus Real Estate, has been vital to achieving this.”