Investment company Develop North PLC has successfully completed a £1.25 million structured finance transaction in Edinburgh. The funds provided supported the conversion of a Georgian townhouse into a 16-bedroom hotel.
The loan was granted in March 2025 to AM Number Three Ltd. The property at 3 John's Place in the Leith district, where the structural works were carried out, served as tangible security for the facility.
Successful project completion and refinancing
Following the completion of the conversion works and the repositioning of the property as a hotel operation, the project was refinanced via a long-term commercial mortgage. For Develop North PLC, the commitment yielded a double-digit return and marked a planned exit from the development financing.
Converting historic building fabric presents developers with specific planning demands. The successful delivery at 3 John's Place highlights the continued demand for boutique hotel and hospitality concepts in the north of the Scottish capital.
Key transaction details
- —Financing volume: £1.25 million
- —Borrower: AM Number Three Ltd
- —Project: Conversion of a Georgian townhouse into a 16-bedroom hotel
- —Location: 3 John's Place, Leith, Edinburgh
- —Exit: Full refinancing via a long-term commercial mortgage
Supported by infrastructure connections and new commercial arrivals, the Leith district has developed into a dynamic submarket of Edinburgh. Against this backdrop, the conversion of the Georgian townhouse provided the foundation for a swift transition from risk-weighted development financing to a permanent commercial mortgage.
