The £5.6-million funding package, which consists of a series of working capital facilities, capital investment and debt restructuring, will allow Worldteam Ltd, owner of South West Holiday Parks, to purchase 250 luxury holiday homes to meet customer demand for its owned and rented holiday accommodation, creating 20 new jobs.
South West Holiday Parks offer a range of holiday homes from budget caravans to luxury lodges across three sites in the South West.
The parks are spread across three sites including Juliots Well in Camelford, Shaldon, and Gorran Haven. The capital investment will go towards the purchase of the new homes across the sites with 80% being earmarked for sale as the business moves towards a private ownership model. Additionally, funding will also be put towards renovating onsite facilities.
Josh Donald, group managing director at Worldteam Ltd, said: “The leisure industry is evolving and HSBC has provided us with the means to meet the public’s growing expectation as they look for something above and beyond the traditional caravan holiday. As well as new luxury accommodation, the deal means we can revamp our sites’ bars, restaurants, gyms and facilities. Once the expansion and renovations are complete, we anticipate a 20% annual growth rate over the next five years with the creation of 20 new jobs in the process.”
James Jordan, HSBC’s head of Corporate Banking for the South West, added: “The HSBC team in Exeter, led by Paul Lane, has extensive experience with the leisure industry in the South West. Their knowledge of the seasonal business environment was instrumental in delivering a tailored package to fit the company’s shift towards a buyer’s market.”