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Commercial real estate lender, Blackfinch Property, has backed the development of a new hotel on Princes Street, Edinburgh, with a £5.6m bridging loan.
The loan has a 12-month duration and also facilitated the purchase of three adjacent properties for the hotel on Princes Street, which benefits from views over Edinburgh castle.
The news comes after the undisclosed borrower received planning permission to redevelop the three vacant retail units into a 347-bed hotel.
An agreement for the lease has reportedly already been signed with an international hotel operator.
The project was subject to a tight deadline of four weeks, and as a Scottish transaction, it required engagement with law firms practising Scottish law.
In accordance with Blackfinch Property’s commitment to ESG criteria, the hotel’s development target is to be net zero carbon, constructed using sustainable materials and building practices.
Nicola Mayes, investment manager at Blackfinch Property, said: “We are pleased to be funding this exciting project which will bring several vacant buildings back into use. The borrower’s plans for this project closely align with our own ESG principles of developing energy efficient property and improving the quality of existing buildings.
“We are also pleased to have been able to forge a new relationship with this borrower, and being able to contribute towards this project which has helped to develop and broaden our in-house legal expertise, and boost our presence in Scotland.”
