Assetz Capital has provided a £607k development loan to Higher End Ltd to develop an old guest house in Morecambe.
The finished property will consist of serviced apartments aimed at supporting the local corporate and tourism sectors.
The property is a large mid-terraced home set out over five floors that has been used as a guesthouse in recent years. The site is being converted to provide seven one-bed and one two-bed self-contained serviced accommodation with ensuite rooms and kitchenettes.
The lender said the influx of investment due over the next 12 months as the Eden projects gets underway is likely to see strong demand for this type of accommodation in the area as it will provide an affordable alternative to standard hotel and guesthouse amenities sought by the corporate market working in the area during the week, and the leisure and tourist industry at the weekend.
Assetz has sought to address funding in sectors such as tourism and hospitality which many traditional lenders overlook, with an upsurge in funding guesthouse acquisitions and redevelopments in recent months.
Colin Doyle, relationship director at Assetz Capital said: “This is a great example of what our lending ethos can achieve. It’s always pleasing improving an existing property to make it great again, and with local tourism on the rise this new enterprise will support the sector and the local economy. This is the second loan we have completed with the director, so long may the partnership continue.”
