Our first property loan investment supported the acquisition and development of a hotel in a prime Edinburgh location.
The transaction
The loan advance was made on the basis of first and sole charge against a prime Edinburgh city centre freehold property which had planning permission for re-development as a hotel.
The loan had rolled interest rising from 11% to 14% per annum.
The transaction was a good example of the opportunities available to clients of Connection Capital due to our flexible investment approach (not bound by fund constraints), which means we can structure investments to suit the situation.
Investment rationale
First charge security on a prime Edinburgh freehold at an attractive interest rate.
The exit
The loan was repaid in full with all interest, in advance of the due date, making a 1.5x return on investment.
The hotel has now been developed and operates as a 240 room Courtyard by Marriott Hotel.
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