CONSTRUCTION of a £9.5million Newquay hotel site redevelopment is due to get underway after funding was secured.

Cator Wells Finance, a specialist property finance brokerage, has successfully secured a £5.8 million loan for an experienced hotelier to knock down part of the former Glendorgal Hotel in Lusty Glaze Road and construct a “high-end” coastal residential scheme.

The development involves the conversion of the derelict hotel into five contemporary townhouses, alongside the construction of three detached cliff-edge luxury homes.

The scheme aims to deliver a boutique collection of premium coastal residences designed to appeal to lifestyle buyers and owner-occupiers once the development is complete.

The transaction reflects Cator Wells Finance’s relationship-led approach to property funding. The client was first introduced to the firm in 2022 when Daniel Dawson, a director at Cator Wells Finance, met them while on holiday in Newquay. What began as an informal conversation developed into a long-term advisory relationship, supporting the client through early-stage planning, feasibility, and scheme preparation over several years.

A spokesperson for Cator Wells Finance said: “Rather than engaging only at the point of funding, Cator Wells Finance worked alongside the client throughout the project’s evolution, providing guidance on lender appetite, scheme structure, and fundability. This long-term involvement ensured the development was positioned effectively when it reached the funding stage.

“Coastal schemes combining conversion and new-build elements can present challenges for lenders due to construction complexity, location-specific risks, and exit considerations.

“Cator Wells Finance 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.

“The £5.8 million facility provides the client with the certainty and flexibility required to move into the construction phase, supporting both the refurbishment of the existing structure and the delivery of the new cliff-edge homes.”

Daniel Dawson, the director of Cator Wells Finance added: “This deal highlights the importance of long-term partnerships in development finance, with many projects requiring years of preparation before reaching execution. The firm continues to position itself as a trusted member of its clients’ professional “power team”, supporting schemes from concept through to completion.”