Arc & Co. secures £17.64m development loan from Downing LLP for Brighton office refurbishment

09 September 2025

Specialist debt and equity advisory Arc & Co. is pleased to announce the successful completion of a £17.64 million development loan in partnership with Downing LLP.

The funding supports the acquisition and comprehensive refurbishment of an office asset in Brighton by the developer client—marking a strategic investment in one of the UK’s supply-constrained regional office markets.

The property will be refurbished to a CAT-A specification and transformed through upgrades to the mechanical and electrical systems to target an EPC A rating and BREEAM score of Excellent.

This initiative supports the reutilisation of existing buildings to achieve best-in-class offices in a market with strong occupational demand and limited new stock coming to the market.

Tenant interest has been high due to the property’s excellent location and ongoing demand for Grade A office space in the area.

Downing was able to add the VAT to the facility, removing the need for a separate VAT loan, which simplified the deal structure—both in terms of timing and intercreditor arrangements.

The transaction was fast-moving, with a site visit completed in March 2025 and tight window required to secure the acquisition.

The deal exemplifies Arc & Co.’s strength in aligning lenders and borrowers across complex opportunities in the alternative lending space.

Arc & Co. Asset Finance Advisor Dieter Kershbaumer comments:

“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 were excellent throughout the process; Will Powell played a significant role in getting the deal across the line.”

Downing Investment Director Will Powell commented:

“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”