Arc & Co. has secured a £15.75m facility from Hampshire Trust Bank (HTB) to purchase and redevelop a former warehouse near Old Street, London.
The funding will be used to buy the property, add two offsite-built airspace storeys and refurbish 18 existing flats.
The site is close to Old Street Station in a busy regeneration area.
The borrower appointed Arc & Co. to deliver a funding solution in a short timeframe.
HTB provided one facility covering the acquisition, refurbishment and airspace construction.
The deal completed in under two months after receiving reports.
Work will see two new upper floors installed in parallel with the refurbishment of the current flats.
This approach allows for new homes in a dense urban area without needing extra land.
Galloway Hughes advised the client, while Brechers LLP advised HTB.
Andrey Redman, director at Arc & Co., said: “This project represents the kind of creative thinking we are proud to support.
“From day one, we worked closely with the borrower to deliver a funding solution that aligned with both their timeline and vision.
“HTB were collaborative, pragmatic and delivered with purpose, making them an ideal partner on this transaction.”
Rob Syrett, head of origination at HTB, said: “This is a strong example of the kind of deal we are seeing more of in inner London, where acquisition, refurbishment and vertical development need to be considered together.
“Structuring these elements within a single facility gives borrowers greater clarity and control.
“Airspace brings both opportunity and complexity, and it is essential to work with advisers who understand what a scheme needs to succeed.”
Syrett added: “Arc & Co. brought that insight to the table and it was a pleasure to work with them again.”
Neil Leitch, managing director of development finance at HTB, said: “Airspace development is increasingly important in London, particularly when supported by modern methods of construction and a clear planning strategy.
“These projects often carry more complexity than ground-up schemes, but they can deliver real value when approached intelligently.
“Our role as a specialist funder is to bring consistency and confidence to the table so that developers and advisers can focus on execution.
“It was a pleasure to support this project and work in partnership with Arc & Co.”
