Newcastle pub's growth plans boosted with £7m HSBC package
A regional leisure operator is expanding due to a £7m financing deal with HSBC UK.
Family-owned Vaulkhard Group owns and operates 15 venues in Newcastle and the North East, including Pacific House, Bealim House, Central Bean, Mushroom, and Perdu.
The working capital from HSBC UK is allowing the firm to expand and refurbish some existing venues, while providing support for potential future additions to its portfolio.
With HSBC UK’s backing, Vaulkhard Group was able to complete the refurbishment and launch of Barluga in Gosforth. The newest addition to the Barluga brand opened at the end of March and has been well received by customers.
Ollie Vaulkhard, managing director of Vaulkhard Group, said: “The support from HSBC UK has been invaluable in allowing us to continue to improve and grow our existing venues, while keeping an eye on sound business opportunities which will add to our portfolio.
“We’ve built a strong relationship with the bank’s team and been impressed by their understanding of our business and our growth ambitions.”
The funding has also allowed the group to secure the purchase of a nine-bedroom building next to its existing Ponteland venue, The Diamond, with the view of continuing to provide guest accommodation.
The group has also recently refurbished Barluga its Grey Street bar in Newcastle.
Work is still ongoing on plans to expand Newcastle-based Blake’s Coffee & Kitchen, converting a currently vacant retail space in an adjacent building, thereby adding approximately 1,500 sq ft to the trading space in Blake’s.
Stuart McLaren, relationship director in the North East at HSBC UK, added: “The Vaulkhard family has an impressive and long-standing presence in Newcastle’s pub and restaurant scene, and Ollie has the ambition and drive to continue to improve the group’s venues and take the business even further.
“We were thrilled to have supported and look forward to seeing what new developments are on the horizon.”
The finance was allocated from HSBC UK’s national SME Fund. The new £14bn SME Fund has recently been announced by HSBC UK, with £350m committed to supporting SMEs in Tyne Tees and Cumbria.
The transaction was overseen by law firms Sintons LLP on behalf of Vaulkhard Group and Endeavour Partnership LLP on behalf of HSBC UK.
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