Arc & Co and GRE Finance structure £17.34m bridging loan

Philip Kay, senior asset finance advisor at Arc & Co. has advised family-owned property company Kingscastle on a £17.34m loan.

The senior bridge loan has been provided by specialist bridge lender GRE Finance, to fund the share buyout of a significant UK real estate portfolio and was secured against 76 UK properties valued at £29.2m.  

The portfolio consists of 51 commercial and 25 residential properties and represents excellent diversification due to the spread of asset types, locations and values.

55% of the assets are in London and the South East with 21% in the North East of England and the remainder in Manchester, the Midlands, the South Coast, South West and Yorkshire. 

The senior loan of £17.34m is being provided by GRE Finance at a 61% LTV on a 12-month term.

Philip Kay, senior asset finance advisor at Arc and Co. said: “GRE really outperformed in getting this loan completed in a short timeframe.

“The loan from GRE was the largest of three loans which together funded the share buyout and was therefore critical to the entire transaction for the client.

“GRE adopted a commercial approach when faced with complexities in the transaction. I look forward to introducing more transactions to them in due course.”  

Daniel Benton from GRE Finance added:  “Kingscastle is an extremely experienced property developer with significant experience of managing large property portfolios.

“This portfolio is well structured given its significant diversity of assets, providing good liquidity and protection to withstand exposure to a particular location or asset class. It was a pleasure to work with Arc & Co. and Kingscastle on this transaction.” 

GRE Finance was advised by Fladgate LLP. 

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