Press Releases
Christie Finance helps secure £168m of funding for the Scottish hotel market
Christie Finance, the business mortgage specialist and sister company of leading business agents, Christie + Co, helped to secure approximately £168 million of funding for the Scottish hotel sector during 2007.
Adrian Foster, from Christie Finance, commented; “One of the major considerations in 2007 centred around the smoking ban and its affect on business performance within the sector and in turn the ability to service a loan. Many people were not sure how the ban was going to affect profits but, from a finance point of view, we did not feel any major effects in our ability to obtain funding for the hotel sector — a fact which is reflected in our success.
“Another change in 2007 was the move towards 100% funding. Traditionally many buyers used the sale proceeds from domestic properties to provide a deposit towards the purchase of their chosen business. However, there has been an increase in the number of buyers who required 100% funding to enable them to either continue living in their property, or to take advantage of the rental market and thereby expand their asset base. Given the slowdown in the residential market towards the end of 2007, especially south of the border, this may become more and more common in 2008, as people are unable to sell their own home. Although many banks are reluctant to proceed with deals on this basis, Christie Finance has been able to secure funding for deals like this, due to our excellent relationships.
“Moving into 2008, we believe that Christie Finance will continue to consolidate its successful position within the sector as the role of the mortgage specialist becomes more and more important in an uncertain credit market. One of the great advantages we have is that we have access to the entire money market and are therefore able to provide our clients with the widest choice of facility. We also believe any further reduction in interest rates in 2008 will give current operators the potential to reduce the cost of their borrowings. All in all, we believe that 2008 is going to be another exciting year for funding in the hotel sector.”
For further information please contact Adrian Foster at Christie Finance on Tel. 0131 557 6666.
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