Commercial Finance
Arc & Co brokers £2.3m student HMO deal in Liverpool
Arc & Co has brokered a £2.3m loan facility for student accommodation developer Brickworks Properties to convert 12 terraced properties in Liverpool.
The terraced houses will be turned into high specification student HMOs, it said.
Sam Le Pard, asset finance adviser at Arc & Co, said: “Working on this opportunity was hugely exciting. Having previously worked with the same clients on individual units, I knew exactly how they worked and what they would want to achieve with this project.
“We managed to save the client approximately five per cent interest a year, by grouping several properties together rather than treating them as individual projects.
“This generated a saving on professional fees as well as ongoing monitoring costs across the course of the transaction.”
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The loan was 65 per cent loan to gross development value and included 100 per cent of construction costs priced at seven per cent a year with a two per cent arrangement fee and no exit fee.
Jordan Silverstone, founder of Brickworks Properties, added: “We’re glad to have found a sophisticated broker and lending partners who understand our model, can support our growth and will allow us to scale.”