SPECIALIST marketplace lender Assetz Capital has provided a £2m development funding loan to London Edinburgh Investments Ltd, to regenerate the former Star Hotel in Kingussie.
Located in the picturesque Cairngorms National Park, the hotel will be transformed into 17 self-catered holiday apartments named ‘Wolf Hall Apartments’. ‘Wolf’s Lair’ – a contemporary pizzeria and bar serving wood fired pizzas and craft ales – will be created from the existing hotel bar.
The new funding is part of a wider drive by Assetz Capital to fund local property and hospitality projects in Scotland, with a focus on community and sustainability. Last year, Assetz provided a £1.16 million development loan to Airlie Green Low Energy Homes for the construction of eight sustainable homes located in Alyth, Perthshire.
In 2021, Assetz Capital provided London Edinburgh Investments Ltd with a £225,000 bridging facility which helped the business acquire the property quickly. The development funding loan will helpt to repay the existing bridging loan, as well as meeting the professional and construction costs to convert the property.
The latest project will provide a boost to the hospitality sector in the Scottish Highlands, in an area that is in high demand for quality short-stay self-catering accommodation. It has also created dozens of jobs in construction from across the Highlands.
The construction programme is set to last for nine months, with the aim to be completed by December 2022 for the winter tourist season. The loan term assumes a 12-month construction period, with a further 6 months for trading stabilisation.
Assetz Capital will continue its work in Kingussie with another project with London Edinburgh Investments to restore the former Police Station into 8 high-quality serviced holiday apartments, which will also provide more jobs in the area from this summer.
Bruce Robertson, Regional Relationship Director at Assetz Capital, said: “London Edinburgh Investments Ltd are repeat customers of ours, so we are delighted to be funding another interesting project. We also helped them to restore the former Police Station into holiday lets, which is located just across the road from this site. There is clearly a demand for holiday lets in this region, and it’s fantastic to help support that.”