Glenhawk has completed a £1.12 million refurbishment loan secured against a Grade II listed boutique hotel in Bath. The loan was provided to an experienced developer who purchased the property below market value, funding both the acquisition and refurbishment works.

Glenhawk's loan offered 80 per cent loan-to-purchase price on day one plus 100 per cent of refurbishment costs, structured at 66 per cent loan-to-gross-development-value, with the borrower's exit planned via term debt.

Glenhawk, headquartered in London, is a specialist bridging and development lender founded in 2017 by chief executive Guy Harrington. The business is regulated by the Financial Conduct Authority through Glenhawk Property Finance Ltd and has lent more than £800 million to date.

The loan was originated by Stephen Wrigley, business development manager at Glenhawk, underwritten by Sonal Kavri, underwriter at Glenhawk, and introduced by Mike Page of MKP Finance Limited.

The structural driver is specialist underwriting capacity for complex heritage asset refinancing, combining Grade II listed status, a below market value purchase and a high loan-to-purchase requirement into a single facility few lenders in the bridging market can structure.

"This deal needed a truly specialist lender. BMV deal, high loan-to-purchase price requirement, commercial refurbishment of a Grade II listed hotel, I'm not sure there are many in the market who would have been able to deliver on this one," said Stephen Wrigley, business development manager at Glenhawk.

"A huge thank you to Mike for putting his trust in Glenhawk and for all his help in driving the case to completion," Wrigley added.

"It was by no means a straightforward transaction, but I found Glenhawk to be efficient, responsive and commercially minded in their efforts to deliver what was a brilliant outcome for our client," said Mike Page of MKP Finance Limited.

For the sector, the Bath deal illustrates how specialist lenders are underwriting heritage hotel refurbishments that combine listed building constraints with below market value acquisitions, a structure many mainstream lenders continue to avoid.

Source: The Intermediary / Glenhawk