Aria Finance was approached to support a complex and high-value commercial development project in the heart of Edinburgh. The client required a bespoke bridging facility to fund both the acquisition of a final commercial unit and the demolition of three interconnected properties to make way for a luxury hotel with full planning consent.
The Client:
An experienced property developer with a strong track record of delivering large-scale projects. Having previously relied on equity and forward funding structures, this was their first time securing traditional debt, making expert guidance and lender relationships critical.
The Situation:
The client had already acquired two of the three adjoining commercial retail units and needed to purchase the final unit for £11,000,000. The properties, which offer rare views of Edinburgh Castle, include listed façade elements, with the remainder of the structures set for full demolition. Planning consent was in place for a luxury hotel development. Given the scale and complexity of the project, particularly the high gearing, heritage considerations, and tight deadlines, securing finance was always going to be challenging.
Our Solution:
Aria Finance arranged a £28,000,000 gross bridging loan at 75% loan-to-value, supported by a £3,000,000 VAT bridge to help cover the purchase and demolition costs. Recognising the complexity, we engaged with key stakeholders early in the process, including regular meetings with the bank and a full site visit. We worked closely with the head of structured real estate to design a bespoke facility, secure approvals early, and negotiate tailored pricing to match the client’s needs.
Benefits & Results:
Aria Finance successfully secured a total of £31,000,000 in funding on highly competitive terms, enabling the client to proceed with confidence on this complex and high-value project.
The bespoke facility was carefully structured to accommodate the high gearing requirement and the unique challenges of the site, including listed building considerations and the need for demolition funding. Our early engagement with the bank’s structured real estate team, combined with regular meetings and a dedicated site visit, helped to ensure a smooth process and build lender confidence.
The finance was completed within just three months from application, allowing the client to complete the site assembly and move forward with the demolition in one of Edinburgh’s most prestigious locations.
