Commercial finance broker Arc & Co. has arranged a £9.4 million refinancing facility from GB Bank for a West End mixed-use property portfolio containing office and residential units.
The five-year loan was structured at 71% loan-to-value with a fixed interest rate of 6.2%. Edward Horn-Smith, managing director at Arc & Co., led the transaction for a client he has advised for more than 15 years.
Cross-collateralisation structure
GB Bank used cross-collateralisation to complete the deal, top-slicing a regional purpose-built student accommodation portfolio owned by the same borrower. This approach provided additional security to support the full £9.4 million facility amount.
“This was a complex refinance given the current income profile of the portfolio,” Horn-Smith said. “Having known the client for over 15 years, it was important for us to deliver a solution that provided stability.”
Top-slicing allows lenders to use surplus rental income from one property asset to support underwriting on another, bridging affordability gaps when a single portfolio cannot meet lending criteria independently.
Lender approach to mixed-use assets
Pankaj Thukral, chief lending officer at GB Bank, said long-term broker relationships enabled the transaction to proceed. “Working with Edward and the team at Arc & Co. allowed us to gain a deep understanding of the client’s long-term strategy,” he stated.
Mixed-use assets in central London have faced tighter refinancing conditions over the past two years, with some lenders restricting criteria on office-heavy portfolios due to occupancy and valuation concerns.
Market context
The 71% LTV ratio and 6.2% fixed rate on a West End mixed-use portfolio indicates continued appetite from specialist lenders for assets with established ownership and quality locations. The structure reflects a segment of the commercial property finance market where lenders are willing to consider portfolio-level underwriting rather than single-asset metrics.
With interest rate expectations fluctuating, fixed-rate refinancing activity may increase as borrowers seek certainty on debt costs ahead of potential market changes.
