HTB secures £12.5m loan for North-East designer shopping village
24 July 2024
Hampshire Trust Bank (HTB) has completed a £12.5 million loan facility to support the development of the first designer shopping outlet village in the North-East. The complex facility faced several challenges, including multiple lease and contractual agreements and completed in just seven weeks between commitment and drawdown.
The project is delivered by long-term business partners Simon Waterfield and Ralph Congreve, who have an extensive track record of developing commercial spaces.
The refinance will allow the experienced developers to finalise funding for the full development of the groundbreaking project, known as the Scotch Corner Designer Village, comprised of retail space, food hall and a large home and garden centre.
With a market valuation of £42.9 million and being the first of its kind in the North-East, the planned 250,000 square foot designer outlet village will provide an injection of economic growth as well as employment opportunities to the region.
The case was introduced to HTB by LEXI Finance and was subject to tight timescales. Having worked on numerous large, complex cases, HTB carried out all due diligence on the site, met the borrower and fully understood what they were seeking to achieve, tailoring the facility accordingly. Having Lending Directors based close to the site helped HTB understand the proposal that may have otherwise been impossible.
Despite the complicated nature of the Scotch Corner project, HTB was able to build a bespoke facility quickly, ensuring the developers can push on with their ambitious plans.
Simon Waterfield, owner of Scotch Corner, said:
“I am thrilled to work with LEXI and HTB on the financing of Scotch Corner. The delivery of this scheme will attract hundreds of thousands of people to the local area, boosting the economy and employment prospects. We are delighted we can move the project forward with this interim finance in place.”
Charlie Armstrong, Director of LEXI Finance, commented:
“This is an amazing project that Simon and his team have orchestrated over many years and we are delighted to play a small part in its progression by arranging this finance. We were impressed that HTB saw Simon’s vision and delivered compelling terms to support the next stage of the project.”
Harry Bhogal, Lending Director in Development Finance at HTB said:
“This was a complicated case, and we were up against tight deadlines. We weren’t phased by this as the client’s passion for bringing high quality products, reputable brands with excellent service and attractive prices to the North really struck a cord with us. We knew from the beginning that we’d be able to collaborate well with both LEXI and the developers, to get the facility delivered.
“We’re always keen to work with ambitious developers, and our commitment to getting to grips with the individual elements of a case means we are well placed to deliver even when there are hurdles.”
Neil Leitch, Managing Director of Development Finance at HTB added:
“Rather than viewing complications as a reason not to proceed with a case, we focus on pinpointing personalised solutions that give the developer the best chance of success. We look forward to seeing the progress of the Scotch Corner development and the undeniable boost it will deliver to the area.”
