Transforming a Former Hotel into High-End Coastal Homes
At Cator Wells Finance, we often say that the strongest funding outcomes are built over time. They come from trust, consistency, and staying close to clients well before a transaction is ready to complete. This coastal development is a clear example of that approach in action.
The project involves the conversion of a former hotel into five stylish contemporary townhouses, alongside the construction of three detached, cliff-edge luxury homes. Each property will benefit from uninterrupted views across Glendorgal Bay and out toward the Atlantic Ocean. Once complete, the scheme will deliver a boutique collection of high-end coastal residences in a prime location, aimed at discerning lifestyle buyers seeking something genuinely distinctive.
What makes this deal particularly meaningful is how the relationship began. Our director, Daniel Dawson, first met the client, an experienced hotelier, while on holiday in Newquay back in 2022. What started as a casual conversation soon developed into discussions around long-term ambitions, site potential, and the early ideas for a future coastal scheme.
At that point, the project was still very much in its infancy. Planning, design, and feasibility work were ongoing, and funding was some distance away. Rather than stepping back until the project was “ready”, we stayed close to the client throughout the process, offering guidance, providing market insight, and helping shape a scheme that would ultimately be fundable. It is not uncommon for us to work with clients for years before a facility is ever drawn, and this project is a perfect example of that long-term, relationship-driven approach.
Coastal developments, particularly those combining conversion and new-build elements, require careful lender positioning. Sensitivities around construction complexity, location, exit values, and sales strategy needed to be addressed clearly and credibly. Our role was to ensure the scheme was presented in a way that accurately reflected the quality of the end product, demonstrated the client’s experience and vision, and mitigated any perceived risk from a lender’s perspective.
Following a detailed review of the scheme and engagement with the funding market, we successfully secured a £5.8m gross development facility against a gross development value of £9.5m. The funding was structured to support both the conversion of the existing building and the delivery of the new cliff-edge homes, providing the client with the certainty and flexibility required to move confidently into the construction phase.
With funding now in place, the project can finally transition from years of preparation into delivery — a significant milestone for the client and a rewarding outcome for everyone involved. For us, this deal perfectly reflects what Cator Wells Finance stands for: long-term partnerships, relationship-led advice, and acting as a trusted member of our clients’ power team from concept through to completion.
Some projects take months. Others take years. We’re proud to stand by our clients for the long haul and help turn well-planned ideas into reality.