Cameron Hayes, director at specialist capital advisory firm Arc & Co., has secured a loan for a portfolio of 88 long-leasehold pubs in Wales.
The commercial facility, provided by Hodge Bank, will fund the acquisition of the portfolio, which consists of 83 long-leasehold properties, three freehold properties, and two leasehold properties with peppercorn rent.
Despite this being a very granular portfolio, Hodge was able to rely on reporting with Savills, who were already familiar with the portfolio.
Arc & Co. ran a thorough tender process and identified Hodge as the best lender for the client, in terms of pricing and process, securing credit within a fortnight of agreeing formal HOTs.
Given the nature of the assets being long leasehold, let to a strong covenant, there were complex legal requirements, and the deal was successfully completed within three months of initial review, establishing a strong relationship between the borrower and lender.
The loan is structured at a very competitive fixed rate on a three-year term, at 60% loan-to-value (LTV).
This deal marks the latest in a series of facilities arranged by Cameron, totalling over £40m, across a mix of residential and commercial, bridging, development and term financing.
Hayes said: “A great completion to get across the line for the fund, and a substantial income-producing portfolio, demonstrating Arc & Co.’s expertise in handling a complex refinance in a challenging sector.
“All sides maintained clear communication throughout, ensuring a smooth completion and establishing a solid foundation for the client’s future financing requirements.”
Gareth Davies, senior business development manager, real estate finance at Hodge, said: “It’s been a pleasure working with James and Adam at Brew Propco and great to complete another deal with Cameron at Arc & Co.
“As a Cardiff based real estate finance provider, we’re particularly proud to have supported a deal of this scale, investing in pub real estate across South and West Wales.
“Public houses are a key part of the social fabric of many communities, and this deal demonstrates our commitment to the leisure and hospitality sector as well as our support for real estate investment in the region.”
