We are excited to say that Acuity Finance were recently approached to provide a bridging loan worth £1,300,000 to a hotel developer looking to expand into a popular holiday destination in Devon.
After collaborating with our legal teams and with the hard work of instructed professionals, we were able to offer the client a tailored and effective financial solution.
Our Corporate Manager, Jamie Smith, was responsible for bringing the client onboard and guiding them through the process, and that makes this his largest deal to date. We’d like to extend our congratulations to him for his achievement.
Read on to find out the specifications of this impressive deal!
Our client was an experienced hotel developer looking to purchase a leasehold site with an incumbent business on the picturesque Devon coastline. Therefore, they required a loan to finalise the purchase of the leasehold site to begin their development.
Once the leasehold was purchased, the business currently operating on the site would continue to trade while they secured full planning permission for a £30 million hotel development on the site.
After reviewing all factors surrounding the loan, including the borrower’s financial and professional history, issues with the proposed leasehold site, and the potential for the scheme, we agreed to provide the borrower with the full amount they requested.
This was down to their impressive track record of previous projects of a similar type and existing plans to deal with the issues that were present on site.
We provided a 12-month, retained interest bridging deal at 1.15% per month. This was calculated as a 52% Loan-to-Value open market value, with an exit secured by development funding.
As a result, the client was able to purchase the leasehold and start progressing with their large development project.
Our owner-managed business style and close working relationship with our clients means that we are always able to provide the tailored solution they need.