Cator Wells Finance has successfully arranged a £5.8 million gross development facility for a coastal residential project in Cornwall, with an anticipated GDV of £9.5 million.
The development will see a former hotel converted into five contemporary townhouses, complemented by the construction of three standalone luxury homes situated on the cliffs overlooking Glendorgal Bay and the Atlantic coastline.
Upon completion, the project will deliver a small, high-quality collection of coastal residences designed to appeal to lifestyle-led buyers and owner-occupiers seeking premium homes in a distinctive seaside setting.
The funding reflects Cator Wells Finance’s long-term, advisory-led approach to property finance. The client, an established hotelier, was first introduced to the firm in 2022 after meeting Daniel Dawson, Director at Cator Wells Finance, during a holiday in Newquay. What began as a chance meeting developed into an ongoing professional relationship, with the firm supporting the scheme from its early planning stages.
Instead of becoming involved only when funding was required, Cator Wells Finance worked alongside the client throughout the project lifecycle, advising on lender appetite, development structure and fundability considerations. This approach ensured the scheme was robustly prepared when presented to lenders.
The £5.8 million facility now enables the client to move forward with construction, providing flexibility and confidence to deliver both the refurbishment of the existing building and the new-build cliff-edge homes.
Commenting on the transaction, Director at Cator Wells Finance Daniel Dawson said: “We are delighted to complete this deal, which highlights the importance of long-term partnerships in development finance, with many projects requiring years of preparation before reaching execution.
“Coastal schemes combining conversion and new-build elements can present challenges for lenders due to construction complexity, location-specific risks, and exit considerations. To mitigate this, we structured and presented the opportunity to accurately reflect the quality of the end product, the strength of the location, and the client’s experience, enabling a competitive funding solution to be secured.
“As a firm, we continue to position ourselves as trusted members of our clients’ professional “power team”, supporting schemes from concept through to completion.”
