Refinancing deal lays solid foundations for Darlaston Builders Merchants

ONE of the region’s largest builders’ merchants is looking to expand following a property restructuring package from HSBC.

Darlaston Builders Merchants, founded in 1993, has successfully completed a £2m refinancing package on seven of its industrial properties in the Black Country.

The refinancing with HSBC’s Black Country and Shropshire commercial team will allow the company to build on its existing operation which includes depots in Darlaston, Wednesbury, Birmingham and Coventry. The refinance deal also marks the start of a new banking relationship between the company and HSBC.

As well as recently opening a new 28,000 sq ft bathroom showroom and distribution centre, the company has gained planning permission for a new landscape and builders’ merchants at a four acre site in Walsall.

The £2m transaction involved a re-gearing of the company’s property portfolio with the commercial property team at Dudley law firm Hawkins Hatton working closely with Gary Riley, senior international commercial manager at HSBC, on the deal. In addition to the refinancing of existing debt, HSBC has also provided additional funding to support the company’s growth. 

Darlaston Builders Merchants started out with just two employees but now employs more than 65 staff throughout the organisation.

HSBC’s Gary Riley said: “Darlaston Builders Merchants is an expanding company and this finance package helps put the company in a position where it can grow further.

“We are pleased to welcome the company as customers of HSBC and as we have known the business for a number of years we’re thrilled they have switched their banking needs to us.”