Cambridge and Glasgow hotel project
This round of fund raising will part finance the acquisition of two properties, one in central Cambridge and one in central Glasgow. Each of these properties will be redeveloped and converted into a hotel for 57 keys and 96 keys respectively. Planning permission was granted on both sites in summer 2019. In addition to the acquisition of the Cambridge and Glasgow sites our client intends building up a portfolio of city hotels in London, Edinburgh, Cardiff, Brighton and Bath.
The investment strategy of our client is to focus on redeveloping existing properties in prime locations in city centres by focusing on an affordable pricing strategy, delivering 4-star plus fit outs but without the F&B component of a full service hotel. This is expected to maximise sellable (room) space and reduce overheads therefore enhance profitability.
Our client has successfully redeveloped and operates an award winning 5 star hotel in the Scottish Highlands.
|Investment vehicle||Loan note|
|Gross Development Value||£27m|
|Project duration||36 months|
|Total number of rooms||153|
|Security||Parent company guarantee and second charge|
|EXTERNAL INVESTMENT REQUIRED|
|Interest rate||10% per annum|