Newcastle-based Benfield Motor Group has secured a £40m funding package led by Royal Bank of Scotland Corporate & Institutional Banking (RBS CIB) and supported by Barclays Bank to support a company-wide three-year capital investment programme.
The new £40m facility will support the building of three new motor dealerships to enable the group to expand, comprising Ford in Sunderland (opening January 2014) and Audi in both Newcastle (opening July 2014) and Sunderland (opening 2015).
The £40m funding consists of a joint £23.5m revolving credit facility from RBS CIB and Barclays as well as an additional £16.5m from RBS, which includes £7m from specialist asset finance division Lombard.
Gerard Murray, Benfield's finance director, said: “The funding package will allow us to execute our significant capital investment programme to provide first-class motor retail facilities and deliver an outstanding retail experience to our growing number of customers.
"We have worked with RBS for 40 years now and have always valued the bank’s advice and, along with the significant input and advice from Barclays, look forward to a strong and even more successful future for the business."
The deal was led by David Wilkinson at Royal Bank of Scotland and Judith Richardson, relationship director, at Barclays Bank.
Wilkinson said: "We’re delighted to close this transaction with Benfield and support this great local business in its investment plans. The motor retailing market is one RBS has good experience in lending to and we are especially pleased to work with a management team who have dealt head-on with challenging market conditions and continued to prosper.”
Family-owned Benfield, founded in 1957, is an AM100 car dealer group with a network of 34 franchised dealerships throughout the North East of England, Yorkshire and North West.