Red Chilli Structured Finance announces that it has arranged a £6m package for a block of serviced apartments in one of the UK’s regional city centres.
“The challenge on this project was to find a lender who understands this niche product in order to create a long term relationship”, said Dorothee Queyroux, senior broker at Red Chilli. “Serviced apartments are growing in the UK but remain an unknown market to the majority of traditional lenders. Not knowing how to classify this asset (residential or hotel) makes it difficult to fund in particular when no trading history is available.” The client, an experienced developer and investor, is looking to build a portfolio of serviced apartments across the UK. “It was critical that we found a lender that not only understood the asset class but which also had the appetite to support our client’s growth plans”.
“We are still getting some very good terms for experienced clients and banks are still active. However, the current climate is testing to say the least and banks are increasingly choosy as to which projects they back. Knowing which lenders do what and how best to structure a funding package is where Red Chilli can really help”.
Red Chilli Structured Finance is an independent property finance advisory firm specialising in arranging funding for property projects in the UK and all over Europe. Call us on 0845 210 5000 to discuss your funding requirements. www.redchilli.com
Red Chilli Structured Finance is an independent property finance advisory firm specialising in arranging funding for property projects in the UK and all over Europe.
Call us on 0845 210 5000 to discuss your funding requirements
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