Cator Wells Finance has completed a £5.8 million gross development facility to support a high-end residential project on the Cornish coast, with a forecast gross development value of £9.5 million.
The scheme centres on the transformation of a former hotel in Cornwall into five modern townhouses, alongside the delivery of three detached luxury homes positioned on the cliff edge, overlooking Glendorgal Bay and the Atlantic Ocean.
When finished, the development will comprise a limited collection of premium coastal properties, aimed at lifestyle purchasers and owner-occupiers seeking high-quality homes in a sought-after seaside location.
The transaction demonstrates Cator Wells Finance’s relationship-driven approach to development funding. The client, an experienced hotelier, was first introduced to the firm in 2022 after Daniel Dawson, Director at Cator Wells Finance, met them while on holiday in Newquay. An initial informal discussion evolved into a multi-year advisory relationship, with Cator Wells Finance supporting the project through planning, feasibility analysis and scheme refinement.
Rather than entering the process solely at the point of finance, the brokerage worked closely with the client throughout the project’s development, offering guidance on lender appetite, deal structure and overall fundability. This early involvement ensured the scheme was well positioned once funding was required.
The £5.8 million facility provides the certainty needed to progress into the construction phase, enabling both the refurbishment of the existing building and the construction of the new 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.”
