Octopus Property has funded the acquisition of the Holiday Inn Stonehenge in Wiltshire – located near the historic monument.
The specialist property lender provided Bowling Green Asset Management (BGAM) with a £5m loan for the acquisition in four days.
The hotel has 103 beds and there are plans to add an additional 47 bedrooms and a standalone restaurant.
Dominic Gibson, fund manager at Octopus Property, said: “Having been introduced the loan requirement by Steve Clinning of Howard Kennedy, one of our most trusted legal advisers, we relished the challenge of delivering the loan facility within four days.
“BGAM is an established property investor who required funding at a crucial moment, having been let down by a major clearing bank.
“By taking what was a seemingly complex loan arrangement and preventing a potential missed opportunity, we’ve again highlighted why specialist lenders are becoming more popular with borrowers who continue to be frustrated by the delays they face when applying for financing with major banks.”
One million visitors are attracted to Stonehenge per year.
The 12 month facility with Octopus includes a pre-approved further advance.
Jamie Levy & Nicholas Rubin, directors of Bowling Green Asset Management, said: “We are delighted to announce our second branded hotel acquisition of 2017, the 103 bedroom Holiday Inn Stonehenge, for a total SPA consideration of £12.5m, which was completed with funding from Octopus Property.
“The SPA price equates to an attractive net initial yield of 9.25% and is well aligned with our ongoing acquisition strategy.
“BGAM will be looking at various asset management opportunities on site, whilst continuing the good work of the previous owner. We will also be keeping the current senior management team, as well as all current employees, as we look to expand the hotel’s offerings.”