"This was a landmark asset with obvious potential, especially given the shortage of new Grade A stock in the market, so it was important to explore all approaches to get this exceptional deal structured"
- Dieter Kershbaumer - Arc & Co.
Arc & Co. has arranged a £17.64 million development loan with Downing LLP to support the acquisition and refurbishment of an office building in Brighton. The funding will enable the transformation of the property into modern office space at a time of strong demand and limited supply in the regional market.
The building will be upgraded to a CAT-A specification, with improvements to mechanical and electrical systems aimed at achieving an EPC A rating and a BREEAM Excellent score. By repurposing the existing structure, the project is designed to deliver high-quality offices in a location with ongoing tenant demand.
Tenant interest has already been strong, with the property’s location adding to its appeal for occupiers seeking Grade A space. Downing also included VAT within the facility, removing the need for a separate VAT loan and simplifying the structure. The transaction moved quickly, with a site visit in March 2025 and a short timeframe to secure the acquisition.
According to Arc & Co., the deal highlights its role in bringing together lenders and developers in complex alternative lending situations.
Dieter Kershbaumer, asset finance advisor at Arc & Co., explained, “This was a landmark asset with obvious potential, especially given the shortage of new Grade A stock in the market, so it was important to explore all approaches to get this exceptional deal structured."
"The client is a specialist permitted developer, and this was their first office development. My background as a quantity surveyor meant that I was able to communicate to the funders that the scope of works was well within their capability. The developer was extremely versatile, and their proactive approach was instrumental in maintaining momentum. Downing was excellent throughout the process; Will Powell played a significant role in getting the deal across the line.”
Will Powell, investment director at Downing, added, “Having known and worked with the team at Arc & Co. for over 10 years now, it was great to complete on such a specialist transaction for an excellent client in the sector. The deal involved a number of complexities not concurrent with a typical funding arrangement, and the team involved exhibited first-class capability in getting it done. Against a backdrop of sustained market challenges, this deal went against the grain, and it is a pleasure to be involved.”
