Blackfinch Property has completed a £5.6m bridging loan to facilitate the development of a new hotel in Edinburgh.
The real estate arm of Gloucester-based investment company Blackfinch Group said the property overlooking Edinburgh Castle on Prince's Street will form part of a luxury hotel development.
The project hopes to rejuvenate three dilapidated mixed-use retail/office buildings. The bridging loan provided will facilitate the purchase of a third adjacent property, which will form part of the hotel development plan.
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The unnamed borrower has received planning permission to redevelop the three retail units into a 347-bed hotel, with an agreement for lease already signed with an international hotel operator.
The project was subject to a tight deadline of four weeks, and as a Scottish transaction, it required engagement with law firms practicing Scottish law. In accordance with Blackfinch Property’s commitment to sustainability and environmental, social and governance (ESG) criteria, the hotels development target is to be net zero carbon, constructed using sustainable materials and building practices.
Nicola Mayes, investment manager at Blackfinch Property, said: “We are pleased to be funding this exciting project which will bring several vacant buildings back into use. The borrower’s plans for this project closely align with our own ESG principles of developing energy efficient property and improving the quality of existing buildings.
"We are also pleased to have been able to forge a new relationship with this borrower, and being able to contribute towards this project which has helped to develop and broaden our in-house legal expertise, and boost our presence in Scotland.”
