RCapital invests in SLG

Alice Murray
27 September 2013

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London-based RCapital has made a growth investment in Shropshire Leisure Group (SLG), a company previously held by RBSтs West Register fund.

The West Register fund is RBS's distressed property arm, headed up by Helen Gordon. The fund invests in property from financially distressed situations. This latest deal sees RCapital buying out RBS's stake in the company and providing it with a fresh line of credit.

The new investment feeds into the company's longer term strategy to expand and develop the business. The fresh liquidity will allow the group to invest and update existing facilities in its hotels and restaurants.

RCapital was introduced to the business through real estate advisers Colliers International. According to Jamie Constable, CEO of RCapital, SLG's founders were unable to draw down remaining credit from RBS. This nudged the team to seek new sources of capital.

Company
SLG was founded by Derrick Dulson in the 1960s. It began life as a home builder and later expanded into developing retirement complexes. More recently the group built the Moreton Park complex in 1998 and the Lion Quays Waterside resort in 2000.

Today, SLG comprises the Lord Moreton Pub Restaurant and Moreton Park Hotel – a 45-bedroom, 3-star hotel; the Park Garden Centre; and Lion Quays Waterside Resort – an 82-bedroom, 4-star hotel with country club.

Advisers
Equity – Addleshaw Goddard, Tim Wheldon (Legal).
Management – Gambit Corporate Finance (Corporate finance); O'Connors (Legal).