A former regional office on the outskirts of Edinburgh is set to be reimagined as much-needed aparthotel accommodation after Blackfinch Property completed an £800,000 bridging facility to support its acquisition.
The two-year loan will help the borrower secure the regional office, which has been empty for over 12 months. The borrower’s intention is to submit a change of use application, with the aim of converting the property from offices into serviced accommodation, helping bring additional short-stay capacity to the area.
Blackfinch Property took a detailed, practical view of the asset and the borrower’s plans, with a particular focus on a significant business rates liability linked to the vacancy. The team worked through the detail to get comfortable that these costs would not become payable during the term of the facility, allowing the acquisition to move forward with confidence. The loan was agreed at a prudent 65% loan-to-value.
This transaction also reflects the strength of long-standing relationships. Blackfinch Property was pleased to support a repeat customer with funding that helps progress their next project, building on an established understanding of how the borrower works and their strategy.
Ian Ford, Investment Manager at Blackfinch Property, said: “It is great to provide a repeat customer with funds to advance his next project. Should planning be granted for the change of use then a large vacant asset will be given a new lease of life.”
The facility is structured to give the borrower a clear runway to progress the change of use, while keeping the funding straightforward. As the planning position progresses, the intention is to refinance the facility, providing a clean route to repayment at the end of the term.
For Blackfinch Property, this deal highlights a practical example of backing a well-thought-through repositioning plan to help better serve local demand. It’s also a continuation of a valued relationship, supporting the borrower with the certainty and structure needed to move confidently into the next phase.