At a glance
GRE Capital agreed a 24 month senior loan of about £3.67m secured by a first charge over Burnham Beeches Hotel, an 82 room country house hotel set in landscaped grounds near the Elizabeth line at Burnham. Proceeds refinanced an expired bank facility and funded completion of a phased refurbishment of bedrooms and leisure facilities.
The brief
County Hotels Limited, part of the wider MUI Group, required funding to repay the existing lender and to complete refurbishment works that had begun pre pandemic. The works included upgrading the remaining 48 rooms together with the spa and leisure areas while keeping the hotel trading through the programme.
The GRE solution
GRE Capital structured a senior facility with year one interest rolled up to accommodate lower income during works and with interest serviced thereafter. Security included a first legal charge and standard corporate security. The business plan anticipated refinance onto longer term investment debt once the refurbishment was complete and earnings recovered.
The outcome
The loan allowed essential capital works to proceed without disruption to operations, supporting planned uplifts in room rate and ancillary revenue. On a whole loan basis the gearing was conservative against a reported £10.7m value, providing a clear path to term refinance on completion.
CASE STUDY
BURNHAM BEECHES
Type: Senior Loan Refinance and Refurbishment
Loan Amount: £3.6m
Term: 24 months
Location: Burnham, Buckinghamshire
