Multiple Offers for a Greenfield Hotel Development

Problem

A long-standing client with an established portfolio of pubs identified an opportunity to construct and operate a new hotel on a greenfield site. In a challenging environment of rising interest rates and elevated construction costs, the client approached Distinctive Finance to assist with securing construction funding.

While competitive pricing was important, the client also required a funding structure that provided flexibility throughout construction, the hotel’s opening and the subsequent trading-up period.

Strategy

Edwin Jan, Director at Distinctive Finance, prepared a detailed funding submission supported by a comprehensive feasibility and financial forecast for the proposed development.

Rather than approaching a single lender, Edwin tendered the opportunity to multiple financiers. This created competition between lenders and allowed the client to assess a range of funding structures, pricing and conditions.

Outcome

The funding process resulted in multiple competitive offers, giving the client greater choice over the final lending structure.

The successful structure considered not only pricing but also the flexibility and conditions required to support the project through construction, opening and the early trading period.

Key Takeaway

For construction and development projects, securing funding is only part of the process. The right structure and conditions can be equally important in providing flexibility as a project moves from construction through to operation.

A detailed feasibility, strong funding submission and access to multiple financiers can help create competition and provide greater choice when structuring development finance.

Edwin Jan – Director
[email protected]
0413 996 480