Recognise Bank has announced that it has completed a £4.75m bridging finance deal to refinance and expand a long-established, family-owned estate in Scotland.
The borrower, Tarhill Holdings Ltd, owns Kinross Estate Company, which comprises The Green Hotel and Kinross golf courses. The estate also holds extensive arable and farm land, along with land already granted planning permission for a new golf range. The Kinross estate has remained in the same family for more than 200 years, and further planning is being sought for an eco-lodge holiday park and an assisted care village.
John Hewitt, managing partner at Lathro, introduced the finance facility, which was structured over a 24-month term. The funds are being used to refinance the estate and provide a £1m capital raise, supporting continued refurbishment of the hotel, groundworks for the proposed golf range, and costs towards securing planning permission for the proposed holiday lodges.
The scale and mixed-use nature of the estate meant the transaction required a considered approach, as did the borrower’s wider plans to invest in and expand the business over the facility term. Senior lending manager Luke Beirne led the deal, supported by Recognise Bank’s wider lending and operations team.
The estate’s development plans span several areas, including:
- refurbishment of The Green Hotel
- groundworks for a new golf range
- planning for an eco-lodge holiday park
- planning for an assisted care village
“This was a substantial mixed-use estate with a long family history and a clear plan for further investment,” said Luke Beirne, senior lending manager at Recognise Bank (pictured).
“The borrower needed a facility that could refinance existing lenders while also releasing capital to support the next phase of the estate’s development.
“We worked closely with John and the borrower to understand the full picture and structure a facility that provided both certainty and flexibility. The deal is a good example of how Recognise Bank can take a practical view on more complex property-backed lending where there is a clear strategy and strong underlying asset base.”
“This was an important transaction for our long-standing clients, with a clear vision for the future of the estate,” said John Hewitt. “The mix of hotel, leisure and development potential meant the deal needed a lender that could understand the wider plan rather than looking at the assets in isolation.
“Recognise Bank took the time to understand the borrower’s objectives and worked collaboratively throughout. The facility gives the client the breathing space and capital needed to continue investing in the estate and progress the next stage of its plans.”
“The estate has been part of our family for generations, so it was important to work with a lender that understood both the history of the business and what we are trying to achieve next,” said Jamie Montgomery, director at Tarhill Holdings Ltd. “We appreciated the practical approach taken by Luke, John and the wider team, and the certainty they provided throughout the process.”
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