OFF Developments - Leisure Development - Rockingham, Birmingham Bank And Garhill Capital Back Former Railtrack Boss's First Scheme

Date: 01 Oct 2007

Birmingham-based Dunbar Bank is funding the first development of the former head of mixed-use development at Railtrack.

Mike Foster who has set up on his own as OFF Developments has begun work on a 75,000 sq ft mixed-use development Rockingham Park Leisure, on a key gateway site on the northern outskirts of Corby. The scheme is anchored by a three star 86-bedroom hotel which will be operated by Hilton as its first Hampton Inn in the UK.

Dunbar Bank provided £4.6m of senior debt in two tranches as part of a funding package sourced by Alan Laslett of new north of England finance broker Real Property Finance.

RPF director Alan Laslett said: "We like to think we operate as a quasi financial director for clients. We chose Dunbar because they are very knowledgeable and flexible and will often work on a higher loan to gross development value basis."

RPF also sourced £170,000 of mezzanine funding from Knowle-based Garhill Capital. Garhill is run by the former sales and marketing financial controller at Next, John Dickinson and former property developer Alan Herbertson. Dickinson said: "We think that Corby will experience tremendous growth and Mike has got in at the right time with a great product."

Garhill which provides tranches of mezzanine finance of between £100,000 and £1m, is backed by a major European bank, funds from select investors and the directors own money. Dickinson said: "As people find it harder to source credit we are hoping we can provide a solution to funding shortfalls which does not involve clients having to cede equity."

Dunbar Bank' Midlands regional manager Simon Green said: "Rockingham Park Leisure is a well conceived and located scheme. Corby is an up and coming town, attracting both private and public sector investment and is located in an area of the country where we hope to make other sizeable investments/commitments."

Where do I go now?: » View the latest news items » View the news archive » Subscribe to Weekly Construction Newsletter » Submit news