Alternative Bridging Corporation has provided a second charge loan to secure the purchase of land in order to build a new 100-bed Travelodge hotel.
The loan provided the capital required for the client, Burney Group, to purchase an existing retail site and parking area next to Ipswich Town Football Club, less than a mile from the town centre and a five-minute walk from Ipswich railway station.
Alternative Bridging Corporation provided a second charge loan of £1,037,500 at 65% loan-to-value (LTV) enabling the client the leverage they needed to buy the land and proceed with the final development, which will include a 100-bedroom hotel, with a 72-cover café and 60 car parking spaces, as well as a refurbished 41,000 sq ft of retail warehouse space.
Burney Group is a family-run property developer and investor with experience in developing commercial and mixed use schemes, having already completed a number of schemes across the UK, including a 56-bed Travelodge hotel in Boston, Lincolnshire. The Loan secured will assist Burney Group in developing one of three hotel Developments planned for 2022.
Jonathan Rubins, director at Alternative Bridging Corporation, said: “Second charge loans are rarely straightforward, especially when they are for more than £1m, but they can often provide a great way of delivering the client the leverage they need to complete a scheme. At Alternative Bridging Corporation, it’s in our DNA to find a way to make a deal work, whether it’s a first or second charge, residential or commercial asset.
“In this instance, the client needed to raise extra capital as part of its financing requirements for the scheme. We were not put off by the size of loan required as we have a proven track record of providing finance for complex schemes, often when other lenders have let the client down at the last minute.
“Given the client’s experience and track record in this case we were able to provide the £1m+ second charge loan which meant the large and complex development could go ahead.”
