CapitalRise Closes £6.3m Bridging Loan for Hotel Acquisition and Repositioning in Gloucester
Specialist prime property finance firm CapitalRise has announced the completion of a £6.3m bridging loan against a 127-key hotel in Gloucester, marking CapitalRise’s first loan in the operational real estate sector. The facility will refinance existing debt secured against the hotel, and also provide funding towards the acquisition of the freehold interest.
This highly bespoke bridging loan supports the borrower’s wider business plan to refurbish and reposition the hotel under a new, high-quality brand. The property, while currently tired and in need of modernisation, presents a strong opportunity for value enhancement. Once complete, the transformation will deliver a refreshed hospitality offering that will contribute positively to the local area.
The hotel, which spans over 39,000 sq. ft., is in the historic cathedral city of Gloucester. While this is a new lending location and asset class for CapitalRise – best known for funding high-end residential projects in London and the wider South of England – the firm’s specialist team and flexible approach enabled it to structure a tailored solution that meets the borrower’s needs.
The deal was led by Lee Francis, Head of Origination at CapitalRise (pictured), who brings over 25 years of experience in corporate and structured finance. Lee has deep expertise in operational real estate and has previously structured multiple hotel finance transactions.
The borrower is a corporate entity owned by two accomplished principals, with over 20 years of experience in commercial property development, leasing and investment. Together, they have successfully delivered several hotel refurbishment projects and bring a strong track record to this venture.
“This is an exciting project and a great example of how CapitalRise can support experienced borrowers with bespoke funding solutions across a range of asset classes,” said Lee Francis. “The borrower has a clear vision for repositioning the hotel, and we’re pleased to be supporting the first phase of that journey. With our ability to provide end-to-end finance – from acquisition and refurbishment through to stabilisation and exit – we’re well placed to support the full lifecycle of this project.”
This transaction, lent at a Vacant Possession Value (VPV) of 70%, demonstrates CapitalRise’s flexible and forward-thinking approach to lending, and is capable of structuring tailored finance across a range of asset classes and locations. While the firm remains a leading provider of development, mezzanine, and bridging finance for prime residential projects, it is increasingly supporting diversified real estate strategies for experienced borrowers.
As CapitalRise continues to grow, it remains committed to delivering bespoke funding solutions that align with borrowers’ business plans and long-term investment goals.
