Brotherton advises UTB on £6m funding for beachside hotel conversion

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  • 19/01/2021
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Brotherton advises UTB on £6m funding for beachside hotel conversion
United Trust Bank (UTB) has agreed more than £6m worth of funding towards the redevelopment of a former hotel in Cornwall into residential apartments and commercial space.

 

Brotherton Real Estate advised on the case which was put forward by developers Harrington Homes.

Work has already begun on the site next to Harlyn Bay beach which has seen the former Harlyn Inn Hotel  demolished to be replaced by a three-storey development.

The finished building will consist of 14 two and three-bedroom apartments and ground floor commercial space.

The projected has an estimated gross development value of £11m when finished.

Brotherton Real Estate introduced Harrington Homes to UTB in October with purchase completion due to take place in early November.

UTB said that although Harrington Homes was a new customer the firm had extensive development experience and a strong track record around the South West.

The lender’s credit committee agreed to provide the £6.18m required to cover the balance of the site purchase, construction costs, professional fees other obligations.

An extended repayment term was agreed to provide Harrington Homes with greater flexibility should the pandemic create disruption to the construction timetable.

Demolition works were underway within two weeks of the completion of the site acquisition and the first apartments should be released for sale around Easter 2021.

Robert Kleinman, chief finance officer of Brotherton Real Estate, said: “Mark Pannell and the United Trust Bank team pulled out all the stops to provide a quick decision on this deal and have the funds available within around six weeks of our first conversations.

“I’m very pleased to get another competitive funding deal with UTB over the line and look forward to working together on future deals.”

Mark Pannell, senior manager – property development at UTB added: “Harrington Homes have established a strong reputation for delivering high quality developments and I’m delighted that UTB will be providing the funding to create these superb homes in a stunning location.

“We had to move quickly on this deal and Brotherton’s involvement was crucial to us getting all the information we needed when we needed it.

“With around 40 buyers already showing interest in the apartments, I’m sure this will be another successful development for Harrington Homes and the bank.”

 

 

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