Hodge Bank funds major 88-pub acquisition in Wales with Arc & Co.
Hodge Bank funds major 88-pub acquisition in Wales with Arc & Co.
Hodge Bank has provided a significant commercial loan to fund the acquisition of a portfolio of 88 pubs across Wales, marking one of the lender’s most substantial investments in the leisure and hospitality sector to date.
The deal, arranged by Cameron Hayes, Director at specialist capital advisory firm Arc & Co., supports the purchase of a diverse estate made up of 83 long-leasehold, three freehold, and two peppercorn leasehold properties. Despite the complexity of the portfolio, Hodge moved quickly, relying on established reporting from Savills, who were already familiar with the assets.
Structured on a three-year fixed-rate term at 60% LTV, the loan was finalised in just three months from initial review. Arc & Co. conducted a comprehensive lender tender process, identifying Hodge as the most competitive option in terms of pricing and execution speed. Credit approval was secured within two weeks of agreeing heads of terms.
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Gareth Davies, Senior Business Development Manager at Hodge, said: “It’s been a pleasure working with James and Adam at Brew Propco and great to complete another deal with Cameron at Arc & Co.
“As a Cardiff-based real estate finance provider, we’re particularly proud to support a deal of this scale, investing in pub real estate across South and West Wales.
Public houses are a key part of the social fabric of many communities, and this deal reflects our continued commitment to the leisure and hospitality sector.”
The legal complexity of the portfolio, mainly long-leasehold and let to strong covenants, was navigated efficiently, demonstrating the lender’s confidence in the asset class and in the borrower’s track record.
Cameron Hayes added: “This was a substantial, income-producing portfolio in a sector facing its share of challenges. We’re proud to have delivered a competitive refinance structure and to have helped secure a strong foundation for the client’s long-term investment strategy.”
This transaction is the latest in a series of successful facilities secured by Hayes, who has arranged more than £40 million in funding across residential, commercial, and development assets.
