Background

Spade is a seaside pier complex located in the east of England, with its roots dating back to 1870. The pier has weathered storms and fires over the centuries, however a new amusement centre, alongside a bowling alley, was built on the grounds of the original amusement building and has traded successfully for many years.

Action

FRP’s Financial Advisory team, led by Director, Joanne Price and Partner, Chris Adlam were engaged to provide lender financial due diligence, ahead of the planned acquisition by a local leisure developer. The FRP team reviewed Spade’s historical and forecasted trading performance, net assets and cashflows on behalf of the acquirer and lender, providing further insight to the credit team and identifying any issues and key financial risks.

Outcome

Upon our team’s review, the bank approved the additional funds, securing the future of Spade through its acquisition to an experienced leisure developer, adding to its existing portfolio.