Arc X lands £4.5M Shawbrook loan for six-home Bath scheme

What's the deal? Arc X Developments has secured a £4.5 million development finance facility from ShawbrookDealroom has a profile for this one. Try Dealroom → to build six detached homes near Bath city centre. The money funds the acquisition and development of a former stone quarry in Combe Down.

The details: The facility provides up to 85% loan-to-cost, with day-one funding to cover cashflow and deposit payments during construction. The completed scheme is expected to carry a gross development value of about £6.75 million.

Why now? The 21-month term splits into 15 months for construction followed by a six-month sales period. Broker South West Business FinanceDealroom has a profile for this one. Try Dealroom → introduced the deal.

What's the endgame? Arc X plans to make use of the site's secluded woodland setting while delivering the homes in what Shawbrook called a "sought after part of Bath."

The acquisition came with what the developer described as "unusual arrangements," requiring a flexible lender. "Shawbrook and South West Business Finance took the time to understand what we were trying to achieve," said Alex Feilden-Cook, director at Arc X Developments.

The signal: The deal reflects continued appetite among specialist lenders for smaller, character-led residential schemes that fall outside standard development templates.

Read more: benews.co.uk