Octopus Real Estate completes £8.45m loan on hotel and spa resort

By Bridging Loan Directory 15th December 2021

Octopus Real Estate, part of Octopus Group and a leading UK specialist real estate lender and investor, has completed an £8.45 million loan secured on a hotel with spa and health club, golf course and various amenities.

The Welcombe Hotel, based just outside Stratford-upon-Avon, is extremely well located for a leisure hotel, some 20 miles south of Birmingham and just a few miles from the M40 – allowing for access to London, Coventry, and Oxford.

The Grade II listed building has 85 guest rooms, 11 function suites, a spa and a Championship 18-hole golf course.

The Welcombe Hotel marks Conquer Dawn’s third acquisition in as many months with debt being arranged by Blackbear Capital.

Conquer Dawn have partnered with leading hotel management firm Michels & Taylor to manage the operations of the hotel.

Ludo Mackenzie, Head of Commercial, Octopus Real Estate, commented:

“This is an attractive and sizeable acquisition struck at a price which shows a material discount to pre-pandemic pricing.

It is a great example of buying in a sector which offers both value and scope for asset management.

We are delighted to have supported Conquer Dawn’s acquisition and believe that with the specialist guidance of Michels & Taylor, the Welcombe Hotel will reassert itself as the leading destination hotel in the area.

For Octopus, this deal demonstrates our continued backing of entrepreneurial investors, who are looking to acquire depreciated assets and strive to enhance their value through capital expenditure and specialist management”.

Heath Forusz, Managing Director, Conquer Dawn, commented:

“We are thrilled to add the Welcombe Hotel to our growing portfolio of assets.

We look forward to bringing this wonderful asset back to the standard it deserves.

It is great to be working with Octopus Real Estate who quickly understood the asset and the opportunity.”

Hugh Taylor, Chief Executive, Michels & Taylor, commented:

“We are delighted that Conquer Dawn with the support of Octopus has secured another great asset for its portfolio.

The Welcombe is such a lovely hotel and with the investment plans M&T has developed with the investors, it will become a truly iconic hotel in the UK country house market.”