Arc & Co. completes £5.5m refinance of New Bond Street retail asset
16 February 2026
Arc & Co. has successfully completed secured a £5.5m commercial facility to refinance a retail and upper parts property on New Bond Street, with the transaction led by Philip Kay, Director at Arc & Co.
The loan was arranged with the commercial real estate division of a private bank at a leverage of 33% LTV, priced at 2.20% over SONIA.
The facility completed as part of a wider refinancing exercise across two assets, with the client engaging Arc & Co. specifically to secure the most competitive pricing and a high level of service from a new funding partner.
The borrower is a multi-generational, buy-and-hold investor with a long-standing exposure to Central London commercial real estate. The client was refinancing away from its existing provider, which had become a less suitable fit following a strategic shift towards a more institutional lending approach.
A key challenge arose during the credit process when it became clear that the lender could not lend to an individual borrower on commercial property under its existing banking permissions. An initial proposal to introduce a new SPV was initially presented but, ultimately, Philip structured a transfer of the property into an LLP, enabling the lender to proceed while preserving the client’s broader objectives.
While the asset benefits from an exceptional New Bond Street location, it is single-let with a relatively weak covenant. Philip’s experience in navigating assets of this nature, combined with the borrower’s low leverage and strong credit profile, was instrumental in moving the deal forward.
Pricing was a critical consideration for the client. Philip’s strategy focused on securing full credit approval before optimising commercial terms, ultimately delivering a highly competitive margin in line with the client’s requirements.
The lender was selected for its relationship-led approach and ability to provide direct access to senior decision-makers—a core client requirement. Leveraging Arc & Co.’s long-standing relationship with the Head of Real Estate, Philip was able to secure support for a sub-£10m transaction, despite this falling below their typical deal size. The funder took a long-term view on the borrower’s profile and future potential, with Arc & Co. one of a small number of broker firms trusted to introduce this type of opportunity.
Commenting on the transaction, Philip Kay said:
“This was a great example of where experience, lender relationships, and structuring creativity all came together. The borrower was high quality, lowly levered, and had owned Central London assets for decades, but the ownership structure initially became a blocker.
“By taking the deal through credit early and working closely with the lender, we were able to find a solution that worked for both sides and then drive pricing down to where the client needed it to be. Access to senior decision-makers was key, and this funder proved to be a strong long-term fit.”
This transaction highlights Arc & Co.’s ability to structure around complex ownership issues, unlock lender appetite through strategic positioning, and deliver tailored funding solutions for experienced, high-quality borrowers.
