Neptune assembles £45m war chest

By Bridging Loan Directory -

 

Neptune Investments, the sister company of Neptune Developments, is pulling together £45m to spend on new developments.

The business, led by Daniel Hynd, has already identified two leisure and mixed-use sites in Edinburgh and London.

Neptune Investments was set up by Daniel’s father Peter Hynd to acquire assets developed by the Neptune Developments arm which is jointly owned by Hynd and Richard Douglas. But it is now looking for its own developments.

Its key sites are Queen Square in the centre of Liverpool and the Marine Point Development in New Brighton, which it plans to use to raise further finance.

“We refinanced (Marine Point) with HSBC to enable us to look at other opportunities,” said Daniel Hynd. “Equity is available to us from both developments to source new projects.

“Depending on the size of the deals, we’ll pool that together and treat it as a single pot. We think we can realise £45m.”

He added: “Over the next couple of years there’s going to be a real shift where we’ll see a lot of the banks trying to dispose of distressed properties. We think there will be a lot of opportunities there. The concern is if the banks do it too quickly, they’ll flood the market and drive values rock bottom.”

While funding is an issue at present for new development, Neptune believes it is in a good position to attract finance. “If you put a realistic amount of equity in, the bank knows you’re prepared to risk your own funds so they’re more likely to invest in us, and we’ve got a good track record in terms of delivery,” said Mr Hynd.

“If the banks are confident you’re going to be there in 10-15 years time fulfiling your obligations they’re going to be comfortable doing a deal.”

Queen Square has a hotel, shops, restaurants and a 600-space car park, while Marine Point has the Floral Pavilion theatre and conference centre, The Light cinema, a Morrison’s supermarket, a 66-bed Travelodge Hotel, a casino and other retailers. About 8%, or 14,000 sq ft, of retail and leisure space is still free.