10 September 2019
Recoveries & Restructuring case study - The Langdon Hotel, Bridlington, Yorkshire
SHW's Restructuring & Recoveries team acted as expert advisors on behalf of Yorkshire Building Society for a 28-room hotel on Bridlington seafront - the borrowers could no longer service outstanding debt, necessitating the sale of the asset.
Specific recovery skills were necessary in this case as receivership was deemed not to be preferred route.
Objectives / actions:
- Initial physical securitisation of property including dealing with all aspects of a previously fully-operating business, preparing property for sale with vacant possession
- Carry out analysis to determine best exit strategy, including possible planning consent for residential conversion (14 flats)
- Advising on Planning and Section 106 Agreement costs
- Valuation and marketing of property for disposal
Outcomes:
- SHW took on co-ordination of all activities regarding asset management, insurance and other compliance issues
- Commissioned two comprehensive RICS Red Book valuations
- Advising on marketing agents - property now for sale by private treaty
Recoveries & Restructuring Partner Stephen Ray said: "It is highly satisfying to take this hotel from closure through to the verge of a brand new lease of life, either as new residential stock or a new guest house / hotel."
