Cohort Capital provided an £11m facility for 18 months, comprising two tranches: an £8.8m senior land loan secured against Haymarket Yards and a separate £2.2m VAT facility. While structurally independent, both tranches were delivered as a single committed funding package.

The primary exit is a refinance onto a senior development facility to fund construction. 

Haymarket Yards is a cleared site in Edinburgh’s Haymarket quarter, consented for hotel development. A non-material planning enhancement to increase the consented room count from 180 to 232, is being progressed by the original architects and remains within the scope of the existing planning consent. Edinburgh Council has previously supported a comparable variation on the same site, providing a clear planning precedent.

Edinburgh is consistently one of the top three UK cities outside London for RevPAR, with city-wide occupancy averaging 85%+. A limited new supply pipeline, constrained by planning restrictions and land scarcity, underpins continued strong demand. The Haymarket micro-market is a major growth area, with significant mixed-use development underway and high footfall from the adjacent station.

The borrower is an experienced hotel and property developer with a substantial UK portfolio.

Cohort Capital has previously worked with the borrower on an acquisition facility for a large PBSA block in Central London, a simultaneous exchange and completion with a hard deadline, transacted within 11 days. That loan redeemed ahead of schedule. You can read more about that transaction here.

The quality and detail of the borrower’s responses throughout this process gave Cohort confidence from the outset that the team had a clear plan and knew exactly how to execute it.

Cohort’s prior relationship with the borrower meant there was an established level of confidence on both sides from the outset. The borrower needed to move quickly to meet an acquisition deadline, and with a live planning variation in progress, Cohort was the natural fit.

The team structured around the complexity: forming an independent view on the planning risk, and delivering the VAT facility alongside the main loan under a single commitment. Communication between teams was fast, and the transaction completed within the borrower’s required timeframe.

“We had worked with this borrower before on Lillian Penson Hall, that has since redeemed on time and without issue, so we came to Haymarket Yards with a clear view of how they work. The detail in their responses gave us assurance from the outset. The site itself was compelling: strong hotel demand in the Haymarket quarter, a Motel One agreement for lease already signed, and a straightforward path to development finance. We structured the VAT facility alongside the main loan and moved quickly to get it over the line.”

Tim Lomax — Associate Director, Underwriting, Cohort Capital

“We had a tight deadline and a structure that needed a lender willing to take a considered view rather than a templated approach. Cohort Capital did that. The team were proactive, easy to deal with, and understood exactly what we needed. The dual-facility structure was handled seamlessly, and they moved quickly without cutting corners. Our previous experience with them gave us confidence going in, and Haymarket Yards reinforced it. This is the kind of deal that shows what a specialist lender can do when they know their borrower.”

Raj Sehgal — Director, Union Property Services