£6m funding deal ensures hotel redevelopment is far from fawlty
A complex redevelopment project to an Edwardian property in Wales is nearing completion following a £6m funding deal supplied by a Birmingham-based financier.
Developer Richard Hayward acquired the property on the Esplanade in Penarth in 2007 and following a six-year fight to overcome a host of complex planning, construction and design problems, the finishing line is in sight.
His company, RH Properties (RHP), has transformed the property into a development comprising six unique luxury homes, a café and a restaurant with a nine-bed boutique hotel above.
The project, now in its final phase, has been supported by a funding deal supplied by Signature Private Finance.
Signature said financing projects of this scale was always difficult, particularly away from big-city development hotspots.
Tony Gilbertson, CEO, Signature said: “In the current economic climate, short-term property financers like Signature need to base more of their decisions on experience and an understanding of the developer’s vision, than just figures on a spreadsheet, with boxes to tick on a number of forms.
“To create such a successful transformation of a dilapidated property and achieve the remarkable quality of finish on display, needs developers with vision, ambition and determination.
“The least we can do as principal-lenders is show the same ambition and determination to find ways to lend, not reasons to disappoint.”
The investment deal was manged out of Signature’s Cardiff office, which is seeing a growing appetite for development in South Wales, although not all to the scale of the Penarth project.
Mr Hayward said: “Projects of this scale require short-term property finance from people who understand what developers are trying to achieve. Following the 2008 recession, the rules changed and borrowing the right amount at the right rate became much harder.”
He said Signature had been aware of his ambitions and was pleased with the support he had received.
Mr Gilbertson said the deal had been far from straightforward, however, a suitable package had been designed to everyone’s benefit.
“Richard is a respected property developer, well-known for his work in Wales and it is satisfying to see Signature Private Finance able to make the funds available to support the creation of this luxury development, likely to attract attention from across the UK,” he added.
