Whitehall Capital completes £740k bridging loan for £1.2m boutique hotel
Whitehall Capital Fund (‘Whitehall Capital’ or ‘the Company’), the specialist commercial and residential property bridge financing fund, is delighted to announce that it has completed a £740k loan for a 4-star boutique hotel, valued at £1.2m, located in the desirable Cotswold village of Chipping North, Oxfordshire.
Whitehall Capital has deemed the risk profile for the property to be moderate/low. The loan has a tenor of 12 months and covenants include that the Loan to Value (‘LTV’) ratio must not exceed 61%.
Whitehall Capital, part of the Amram Capital Wealth Management group, issues short term loans (normally 3 to 12 months) that are primarily secured against residential UK property although properties may be residential, commercial, mixed-use or land with planning permission. It ideally targets loans secured against properties valued at between £1m and £10m. The majority of loans are in the £1-5m range. The fund only lends against properties in the UK and has a conscious bias towards big cities – London, Manchester, Birmingham etc. Its current focus area is outside central London but within the M25, but it is actively looking to be a more national lender of choice for its target market.
The loan target net return to investors is between 10% to 12% per annum. Since its establishment, Whitehall Capital has returned a net 10.4% on loans on an annualised basis.
Anthony Bodenstein, CEO of Whitehall Capital, said:
“We’re extremely pleased to assist in the development of this boutique hotel and thereby the support of the local economy. The former HSBC bank building, with more than 8,000 sqft, will be converted into a 31-room hotel and a fine dining restaurant. The developers will ensure they maintain the character of this landmark building and I’m convinced that it will be a welcome addition to the hospitality industry at this quintessentially British holiday destination.
“This loan completion follows a £1.26m bridge loan for a mixed-use residential and commercial development in Islington, London, last week. We look forward to sourcing further loans that offer stable returns during these tremulous times.”