Sam Beaumont, adviser at specialist capital advisory firm Arc & Co., has closed a £4.7m development loan for a ground-up development in Macclesfield.
The scheme is a 2.5-acre development designed with sustainability in mind, comprising 15 new homes that will sit alongside a flexible workspace with both private offices and co-working space.
A farm shop providing stalls for local, independent vendors will also form part of the project.
The 70% loan-to-gross-development-value (LTGDV) facility is for a term of 20 months, priced at 5.65% plus base rate.
The developer – a family business with a track record in the North West – had not worked with a broker before engaging with Arc & Co., having previously dealt directly with lenders.
Beaumont proposed and secured a stretched senior option which suited the client better than a senior facility combined with a mezzanine loan.
This structure meant fewer fees and one less party involved in the transaction.
Beaumont said: “It was fantastic to win this developer’s business, despite their existing relationships with funding providers.
“Our understanding and expertise really came to the fore and added a huge amount of value to the ultimate outcome.
“The deal structure underwent several changes throughout the process, but the lender took a pragmatic approach and worked well with all parties to achieve this outcome.
“It’s exciting to negotiate a deal for an award nominated development, and I look forward to seeing the final product, as well as hopefully working with both the client and borrower again in the future.”
