The borrower is an established landlord and the hotel’s long-standing operator, with extensive experience of managing the property and an established understanding of its trading potential. The facility enables the operator to acquire the hotel’s freehold after being given the opportunity to take ownership of the business and property. Black & White completed the transaction at 55% loan-to-value, providing the speed and certainty required to secure the acquisition.
OPERATOR ACQUIRES HOTEL FREEHOLD
The Grade II listed country house hotel is set within 34 acres of gardens and woodland on the outskirts of Shifnal, near Telford. The property includes its own lake and leisure facilities. The borrower’s day-to-day involvement in the hotel gives the lender visibility over the operator’s experience, the business and the property’s potential. The transaction also builds on an existing relationship between Black & White Bridging, the broker and borrower. The lender already provides a second charge facility secured against the property.
LOWER LEVERAGE SUPPORTS DEAL
Mike Underwood, relationship director at Black & White Bridging, says: “This was a great opportunity to support an experienced operator in taking ownership of a business and property they know inside out. “Their long-standing involvement with the hotel gave us a clear understanding of the proposition, while the lower leverage provided a sensible structure for the acquisition. “For us, it’s exactly what specialist bridging should be about; understanding the deal, moving quickly and giving the borrower the certainty they need to get the transaction over the line. We’re delighted to have supported both the broker and borrower on this one.”
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