Reim Capital completes £2.6m loan for 150-bed hotel conversion

The 12-month deal was used to refinance a previous bridging loan at the end of its term after planning permission was secured.

It was completed in three weeks from initial application to drawdown of funds despite the complexity and “increased legal processing and underwriting”.

The mid-range hotel is due to start construction next year, with an estimated current sale value of £6.5m.

The lender said it is planning to write £2-3m per month during 2020 and expects to surpass these figures later this year by growing its broker distribution.

Reim Capital principal and co-founder Kunal Vaitha said the firm was delighted to be involved in the hotel development in Southall.

“Despite the restrictions of the lockdown, our team worked closely with the lawyers, broker, surveyors and client to overcome hurdles and complete this deal as quickly as possible,” he said.

Imran Paswal, senior associate at Howard Kennedy LLP added: “The two main problems we faced on this transaction were the planning position and the existing occupational tenancy which needed to be surrendered and re-granted.

“We are very much looking forward to working with Reim Capital on further projects through 2020 and beyond.”