Seneca part-funded the purchase of a hotel and supported its conversion to residential living
Our client required development funding to completely renovate the Victoria Hotel in Wigan, Lancashire, a grade II listed building, and convert it into 12 contemporary high specification apartments with full disabled access and lifts and with retail units on the ground floor.
Our client sought a fast solution in order to get started on the renovation and conversion of a large 22 bedroom hotel which had been vacant for several years.
The merit: our client demonstrated a good track record of conversion projects of a similar size and complexity and had excellent knowledge and experience of the property market in Wigan. The renovation and conversion works were considerable and our client had clear plans supported by their own established development team and had provided a sound exit by way of a refinance with another lender.
Our solution: a £487k development facility for 6 months with interest rolled up to the end of the term of the loan. The initial drawdown assisted in the purchase of the hotel and the remainder was drawn down in tranches reflecting the renovation and conversion build schedule.
Some issues along the way: our client experienced delays in completing the project within the agreed term given the scale of the internal works as well as works to the rear of the property and car park. Our client worked with Seneca to adjust the timescales and Seneca supported the client to help manage this delay.
The result and exit: our client completed the project to an exceptional standard both inside and out. The client exited the bridge via a refinance with a longer term lender.
Post-renovation and conversion: Our client was pleased with Seneca’s fast and pragmatic approach at the very outset. Our client benefited from Seneca’s support and accommodation of the unexpected challenges faced by our client during the completion of this project.