Arbuthnot Latham provides flexible £20m facility to drive growth of demerged firms

Solo Capital Homes Ltd. is a family run property firm, founded by brothers Douglas and David Stanley in the 1960s. The portfolio held by Solo Capital Homes Ltd has recently gone through a demerger, with half the assets transferred to the newly established Crestvale Properties Ltd company. The demerger was motivated by the Stanley family’s succession planning strategy. The management of each company was transferred to the founders’ respective sons.

Arbuthnot Latham agreed facilities of up to £10m for each company. This included a £5m Residential Investment Loan and featured a £2m provision for repayment by each company of legacy debt owed by Solo Capital Homes Ltd. The remaining £5m was agreed on a revolving credit facility for the purchase of additional property, for the purpose of investment and property trading. A strategic joint venture agreement has already been formalised with Coplan Estates, a developer who undertakes both residential and commercial developments.

David Stanley said: “We were looking for a banking relationship manager who could manage the complexities involved in the demerger and assist with the growth of the businesses by structuring a facility that would allow them to continue to grow through the acquisition of further assets. Arbuthnot Latham took the time to understand our circumstances and provided a bespoke and effective solution that worked for us, whilst keeping all parties informed throughout the process.”

Arbuthnot Latham’s spokesperson said: “We were delighted to structure and deliver a funding facility to support the development of Solo Capital Homes Ltd. and Crestvale Properties Ltd and to help the Stanley family achieve their succession aims. Both businesses are now in a strong position to leverage new opportunities and to achieve strong growth.”