"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"
- Andrey Redman - Arc & Co.
Arc & Co. has arranged a £15.75 million facility from Hampshire Trust Bank (HTB) to support the acquisition and redevelopment of a former warehouse building near Old Street, London. The funding package will facilitate the purchase of the property and deliver two additional storeys via airspace development, along with the refurbishment of the existing 18 residential units.
Located within one of London’s key regeneration zones and walking distance from Old Street Station, the scheme is set to bring new housing to a high-demand urban location. The borrower, an experienced private developer, instructed Arc & Co. to design a capital structure that would accommodate a tight delivery timeline.
HTB provided a single facility covering acquisition, refurbishment, and the airspace element of the build. The structure was designed to streamline the financing process, removing the need for multiple funding lines and allowing the project to move forward without delay.
The transaction completed in under two months from receipt of reports. The development will see the two upper storeys constructed offsite and installed alongside refurbishment works. This method, often used in dense city environments, enables developers to maximise value and unlock additional housing without requiring further land.
Legal support on the deal was provided by Galloway Hughes for the client and Brechers LLP for HTB.
“This project represents the kind of creative thinking we are proud to support,” said Andrey Redman, director at Arc & Co. “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.”
“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,” commented Rob Syrett, head of origination at HTB. “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. 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, added: “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.”
