Navigating Financial Challenges in Holiday Park Acquisition
3 site holiday park acquisition which required £20 million funding. Lending criteria changed overnight due to pandemic which left client in desperate circumstances. A combination of bridging loans and mezzanine funding was a possible solution and was secured, but this came at a high cost. Rumi looked for alternative options which would save the company money. This came in the form of an embedded capital allowance claim and Research & Development tax credit across the group of companies which assisted in meeting the shortfall in LTV required to secure cheaper debt. Client was then able to secure a more affordable bridge to complete the sale and within 1 year was able to successfully exit onto a commercial mortgage with a 1st tier lender. The holiday parks continue to grow and develop.
