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Three Tuns Development Ltd, a joint venture between two professional property developers, has secured funding on a large semi commercial asset, with backing from Shawbrook.
In 2016, Three Tuns Development Ltd acquired a former hotel and a parade of adjoining retail units in Durham city centre. Since then, the existing hotel rooms have been renovated and converted into student accommodation, and Three Tuns have built three new, purpose-built student accommodation blocks within the hotel grounds.
Despite being a large, complex asset, we were able to facilitate an £18m funding package with an LTV of 65% to enable the development. This included a £10m development exit loan, and £8m capital raise for future plans including onward investment. Bespoke financing was key to the deal, as pricing was honoured throughout the process despite some challenges within the lifecycle of the deal.
The deal was completed in partnership with Franklin Commercial Finance, part of Synergy Commercial Finance, with whom we have developed a strong working relationship, which allowed this package to be possible.
- Nic Franklin, Director at Franklin Commercial Finance
Nic Franklin, Director at Franklin Commercial Finance, said:
“This has been a complex deal which Shawbrook have supported us with from cradle to grave. Our strong relationship has enabled us to provide a tailored, unique package to the client to secure further development.
“Student accommodation shortages are a well-known issue within Durham, so we’re delighted to support developments that address this problem and offer brand new, purpose-built facilities. Dylan and the wider team at Shawbrook have been fantastic throughout, and we appreciate their partnership in getting this deal over the line.”
Dylan Bleasdale, Business Development Manager at Shawbrook, said:
“We’re thrilled to get this deal over the line and support Three Tuns with some interesting and much-needed developments.
Given the scale and type of asset, this was a complex process, and the support of Franklin Commercial Finance was key. After a high street lender turned away this client, we are pleased we were able to overcome the complexities of the deal and offer a bespoke funding package to deliver their investment mission.”
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