Aldermore, the specialist finance lender, has provided a property development loan of £4.6m for the build of new residential apartments in Somerset. The loan was granted to Refresh Property Group Limited, part of Acorn Homes Group Ltd. In total, 40 new apartments will be constructed on a former hotel site.
The hotel, Lynton House Hotel, was badly damaged by a fire in 2008 and then another in 2015. It will be entirely demolished to make way for the new construction, as it is not in a salvageable condition.
The development will be made up of 12 one-bedroom apartments and 28 two-bedroom apartments, located within walking distance of a range of local amenities.
Colin Ness, property development manager at Aldermore, said: “It’s great to be able to breathe new life into a site which has been derelict for well over a decade now. Mark and his team were very easy to deal with and are highly experienced at working on new build schemes such as this. We’re looking forward to seeing the site complete and contributing to the regeneration of the local area.”
Mark Thomas, managing director of Acorn Homes, said: “It was great to complete our first deal with Aldermore on this exciting project which we have been working on for seven years and taken through numerous planning processes. Aldermore offer both residential development and investment finance and as such are a natural lender for us as we are both a developer and a private sector (PRS) landlord. Colin and his team were very responsive and pragmatic throughout the transaction and we hope that this is the first deal of many together. We look forward to rejuvenating this site and adding rental stock in Weston-super-Mare to our ever-growing PRS portfolio.”
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Aldermore recently provided a £8.4m development finance loan to Citu Group, a low-carbon developer, to finance the development of a 46-unit residential scheme in Kelham Central, Sheffield.