Funding a Multi-Asset Rural Enterprise and Channel Islands Acquisition

At UK Agricultural Finance, we regularly support clients whose funding requirements extend beyond the scope of traditional lenders. Complex structures, diversified income streams, and evolving business needs often require a flexible, relationship-led approach.

This case, led by Sue McIntosh-Gibbs, demonstrates not only how an initial bespoke funding solution can unlock opportunity, but also how ongoing support, through a subsequent further advance, can help sustain momentum as a rural business continues to grow and diversify.

The Initial Requirement

Our client, an experienced borrower in his 60s and director of a successful property development business, initially approached UK Agricultural Finance seeking a £2.5 million facility at a loan-to-value of just under 50%.

The funding requirement was twofold:

To refinance an existing facility with Together
To raise capital to support the acquisition of an established self-catering holiday let business in the Channel Islands

While refinancing was a key driver, the broader objective was to restructure borrowing in a way that better aligned with the borrower’s long-term plans and increasingly diversified income streams.

A Strong Foundation: Agricultural Roots and Commercial Experience

Although now operating at scale across property and commercial assets, the borrower’s background is firmly rooted in agriculture. Raised within a dairy farming family, he retains close ties to the sector, with his brother continuing to run the family farming business and grazing cattle on land owned by the borrower.

Around a decade ago, the borrower inherited one of the principal farm assets included in the security. At that time, the holding was largely derelict. Through phased investment and careful planning, it has since been transformed into a high-quality, income-generating rural enterprise.

This combination of agricultural understanding and commercial expertise underpinned our confidence in the case.

Security Backed by Scale and Long-Term Potential

The initial facility was secured against two substantial farm holdings, offering both immediate income and long-term strategic value.

The first farm, extending to approximately 130 acres, operates as a well-developed equestrian centre. The site includes a six-bedroom farmhouse, annexe, coach house, and extensive outbuildings, alongside high-spec equestrian facilities such as newly installed stabling, a floodlit arena, and specialist training areas.

The second farm comprises a three-bedroom farmhouse under renovation, a range of agricultural buildings being converted into commercial units, and approximately 150 acres of pasture land.

Importantly, around 100 acres of this land is being considered for a large-scale residential development of up to 900 homes. Subject to planning, this represents significant future uplift and reinforces the strength of the underlying asset base.

Diversification in Action

A defining feature of this case is the borrower’s proactive and well-executed approach to diversification.

The equestrian enterprise sits at the heart of the business and is operated by the borrower and his daughter, supported by a team of 10 to 12 staff. The operation includes breeding, training, and competition, with horses achieving sale values exceeding £100,000.

Alongside this, the borrower has invested in a range of complementary income streams:

Commercial units under development for rental income
A country store, veterinary presence, and equine hydrotherapy facilities
A café with plans for expansion into a larger hospitality offering
Fishing lakes with a day-rate model
Glamping accommodation to support tourism and events

This layered income model provides both resilience and scalability, strengthening the overall lending proposition.

Expanding Beyond the Mainland

Part of the original funding enabled the acquisition of a successful self-catering accommodation business in the Channel Islands. The site includes over ten holiday lets and benefits from experienced on-site management, ensuring continuity of operations.

It is important to note that not all lenders are able to support acquisitions in the Channel Islands. UK Agricultural Finance’s ability to lend against UK-based security while facilitating offshore acquisitions provided a distinct advantage, allowing the borrower to secure a high-quality, income-generating asset.

Delivering the Initial Funding Solution

Taking a holistic view of the borrower’s position, we structured a bespoke £2.5 million facility that:

Refinanced existing borrowing
Released capital for acquisition
Maintained a conservative sub-50% loan-to-value

This provided the borrower with both stability and flexibility to continue executing their wider business strategy.

Supporting Continued Growth: The Further Advance

Following the success of the initial facility and continued progress across the portfolio, the borrower returned to UK Agricultural Finance to secure a further advance of £200,000.

As part of this process, additional security was introduced, bringing the overall loan-to-value to approximately 60%.

The further advance was structured to support several key areas of ongoing development and working capital:

£90,000 to complete the development of commercial units
£10,000 for infrastructure improvements, including fencing around the fishery footpath
£40,000 to stock the fishery and bring the second lake into operation
£60,000 to replenish working capital following investment into the on-site country store

Strengthening Income Streams

The additional funding directly supports income-generating elements of the business that are already demonstrating strong demand.

The commercial units are nearing completion, with six of the ten units already pre-let and strong interest in the remaining space. Once fully occupied, each unit is expected to generate approximately £12,000 per annum. The units have been deliberately designed at a smaller scale, achieving rents of around £1,000 per month, helping to ensure consistent occupancy and resilience in cash flow. Local market conditions further support this strategy, with a recognised shortage of smaller industrial units in the area.

The fishery is also performing well. One lake is already operational, generating income from day fishing and organised competitions. Forecast income is approximately £400 per day, equating to around £144,000 per annum. The second lake, funded through the advance, is expected to mirror this performance once fully operational.

A Growing Equestrian and Retail Offering

In October 2025, the borrower further strengthened the business with the launch of an on-site country store. Total investment into the store, including fixtures, fittings, and initial stock, was approximately £250,000, partly funded through farm cashflow.

The business is now performing strongly, with turnover currently around £30,000 per month and continuing to grow.

The wider equestrian operation has also gained significant traction. The site now hosts three shows per week, with confirmed bookings extending into 2027. These events generate multiple revenue streams, including entry fees, café income, and increased footfall through the country store.

The site is now widely regarded as a leading equestrian venue in the area, with demand continuing to increase.

The Outcome

Through both the initial facility and subsequent further advance, UK Agricultural Finance has supported the borrower in:

Refinancing and restructuring existing debt
Acquiring a high-performing Channel Islands asset
Completing key development projects
Expanding and stabilising multiple income streams
Strengthening working capital and cashflow

The borrower is now well positioned for continued growth, with a robust and diversified business model supported by both immediate income and long-term development potential.

A Long-Term Lending Partner

This case highlights the importance of a lender that can not only deliver at the outset, but also continue to support clients as their businesses evolve.

At UK Agricultural Finance, we understand that rural enterprises are rarely static. Growth, diversification, and reinvestment are ongoing processes. By taking a relationship-led and flexible approach, we are able to provide funding solutions that adapt alongside our clients’ ambitions, including supporting opportunities such as Channel Islands acquisitions that fall outside the scope of many traditional lenders.

If you are looking to refinance, expand, or diversify your rural business, UK Agricultural Finance can provide a tailored solution designed to support both your immediate needs and long-term goals.