Case study: Arc & Co. partners with Delancey on £15.7m loan for office in London

The £15.7m acquisition loan was to assist a borrower to fund the purchase of an office in Farringdon, London.

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Property | Reporter
3rd July 2024
Philip Kay - Arc & Co 266

The 24-month facility is provided by Delancey Real Estate, who were flexible in their approach to this higher leverage requirement.

Farringdon is a strong office location currently undergoing wider regeneration which supports underlying rental demand.

Philip Kay, (pictured) director at Arc & Co., commented: “The client managed to secure the acquisition of the office building at a very favourable entry level, which enabled the structuring a higher LTV with Delancey.

“We are pleased to have concluded on yet another successful office transaction, with a client whose investment strategy is targeted at strong London locations with an end goal of repositioning commercial assets to best-in-class.

“Understanding their business plan and Delancey’s positive appetite for this sort of project meant that we were able to secure an ideal outcome in what remains a challenging environment.”

Martin Kom, director of real estate strategies at Delancey, said: "We continue to have high conviction in central London offices, as demonstrated by our recent financing activity and remain relationship-led in our approach, so are pleased to be working with a high-quality sponsor like ZCS 2. The polarisation taking place within the office market is causing many lenders to withdraw entirely, creating an opening for us to step in. However, we see the shift towards private debt being structural and not purely cyclical, and real estate credit as a whole, will be a longer-term strategy for us.”

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