Recognise Bank has completed a £4.75 million bridging loan to refinance and support the expansion of a family-owned hotel and golf estate in Scotland.
The borrower, Tarhill Holdings Ltd, owns Kinross Estate Company, whose assets include the Green Hotel, two golf courses, farmland and a site with planning permission for a new golf range.
The estate has been owned by the same family for more than 200 years. Further planning permission is being sought for an eco-lodge holiday park and an assisted care village.
The 24-month facility was introduced by John Hewitt, managing partner at Lathro. It will refinance existing debt and provide a £1 million capital raise.
The additional funds will be used to continue the refurbishment of the hotel, undertake groundworks for the proposed golf range and help to meet the cost of securing planning permission for the holiday lodges.
Recognise said the size and mixed-use nature of the estate, together with the borrower’s plans to invest in and expand the business, required a considered approach to the transaction.
The deal was led by Luke Beirne, senior lending manager at Recognise Bank, with support from the lender’s wider lending and operations team.
Beirne (pictured) says: “This was a substantial mixed-use estate with a long family history and a clear plan for further investment. The borrower needed a facility that could refinance existing lenders while also releasing capital to support the next phase of the estate’s development.
“We worked closely with John and the borrower to understand the full picture and structure a facility that provided both certainty and flexibility. The deal is a good example of how Recognise Bank can take a practical view on more complex property-backed lending where there is a clear strategy and strong underlying asset base.”
Hewitt says: “This was an important transaction for our long-standing clients, with a clear vision for the future of the estate. The mix of hotel, leisure and development potential meant the deal needed a lender that could understand the wider plan rather than looking at the assets in isolation.
“Recognise Bank took the time to understand the borrower’s objectives and worked collaboratively throughout. The facility gives the client the breathing space and capital needed to continue investing in the estate and progress the next stage of its plans.”
Jamie Montgomery, director at Tarhill Holdings Ltd, adds: “The estate has been part of our family for generations, so it was important to work with a lender that understood both the history of the business and what we are trying to achieve next.
“We appreciated the practical approach taken by Luke, John and the wider team, and the certainty they provided throughout the process.”
