As part of our series of regular case study updates, here is an example of a recently completed two-year loan secured against four hotels.
Deal scenario
The client has a successful hotel business with properties across the north of England and Scotland.
They needed to refinance an expired commercial mortgage and release equity to modernise two of the hotels in their chain.
A further layer of complexity was a group restructure.
Our lending solution
To support the client’s needs, we provided a loan of £3.1 million which was drawn down in two separate tranches:
- A first tranche to refinance the expired mortgage.
- A second advance for the modernisation work.
We agreed a 24-month term with no early repayment charges.
On completion of the modernisation programme the client will be in a position to refinance onto a traditional commercial mortgage.
Outcome
There were two pressing needs here. Firstly, to repay the incumbent lender who were applying increasing pressure to our borrower. Once this had been achieved he was then able to plan the schedule of works.
These needed to be done on a phased basis to ensure minimal disruption to the business.
We made the second tranche available on demand so that it could accessed on the client’s terms. From the outset he made it clear he needed maximum flexibility.
Relationship Director, Richard King, commented:
“This was a really complex transaction with several moving parts. All parties had to work very closely together to get to the finishing line which, after a few twists and turns, we reached successfully.”
Get in touch
If you’d like to talk to us about our commercial lending proposition and how we can help you and your clients, speak to the Relationship Director in your local office.
Contact Our team today
![Jamie Russell](https://ortussecuredfinance.co.uk/wp-content/uploads/2023/04/jamie_russell-02322_bw_lores.jpg)
Jamie Russell
jamie@ortussecuredfinance.co.uk
07741 196308
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Mel Howard
07467 188508
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Richard King
rking@ortussecuredfinance.co.uk