North East leisure and property business the Malhotra Group is hoping to create 200 new jobs after securing a £23m finance package.
The Newcastle based business, which owns the Three Mile in Gosforth and city centre venues Grey Street Hotel, Leila Lily’s and Market Lane, has obtained the funding package from HSBC UK, which will help it move forward a series of regeneration projects.
The developments will include the transformation of the site of the former Sandpiper pub in Cullercoats, North Tyneside.
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The group is converting the site in a mixed residential and commercial development, which will include the construction of 13 private apartments with three retailers on its ground floor, including a 4,000 sqft Co-Operative store.
The group is also using the funding to redevelop its existing Market Lane site on Pilgrim Street in central Newcastle, as well as its New Northumbria Hotel property in Jesmond, which will add further residential apartments to the site.
Meenu Malhotra, chairman at Malhotra Group, said: “We’re proud to play a role in reinvigorating the North East economy in the post-Covid era, after what’s been a challenging time for the hospitality industry. Our investment in these developments will breathe life back into some of Newcastle’s most iconic buildings as we rebrand some of our popular existing venues. We also look forward to transforming some redundant buildings into new residential space. ”
The company, which last year moved into its new head office on Newcastle’s Grey Street, will begin all of these projects this year and expects them to reach completion within the next 36 months.
Other schemes the company is involved in include the creation of a huge hotel and leisure complex taking up an entire section of Mosely Street, Cloth Market and Grey Street, which will have a rooftop swimming pool, bars and restaurants.
Nearby on Pilgrim Street it is also creating an aparthotel which will link up with its Grey Street Hotel.
Ben Foster, relationship director at HBSC UK, added: “Malhotra Group is a stand out operator in the North East for their much-loved and award winning bars, restaurants and hotels. We’re excited to support their plans to give their existing and new properties a new lease of life as they undertake ambitious regeneration plans in the North East and create jobs.”
Local law firm Muckle LLP worked on the transaction on behalf of Malhotra Group, while Womble Bond Dickinson (UK) LLP acted for HSBC UK.
Grant Thornton oversaw the financial due diligence for HSBC UK.
