Develop North PLC (Develop North) has completed a £1.25 million funding deal that helped transform a Georgian townhouse in Edinburgh into a boutique hotel, generating a double-digit return on investment for the company.
The London Stock Exchange-listed real estate investment company provided the facility to AM Number Three Ltd in March 2025, secured against 3 John’s Place in Leith. The loan has now been fully repaid following refinancing through a long-term commercial mortgage.
The funding enabled the development and opening of the 16-bedroom hotel, operated by family-run Archibald Hotel Collection. Since welcoming its first guests in July 2025, the hotel has traded strongly and received positive guest feedback, achieving a rating of 9.6 out of 10 on Expedia.
Michelle Percy, Chief Executive Officer of Develop North, said: “This investment helped the operator bring a historic building back into use as a hotel and establish a business that has been well received by its guests.
“The move to a long-term commercial mortgage marks an important milestone for the owners. For Develop North, full repayment and a double-digit return demonstrate the value of supporting experienced operators with a clear plan for their development.”
Overlooking Leith Links, 3 John’s Place combines the townhouse’s historic character with a contemporary interior and technology including keyless entry and guest-controlled room settings.
The deal forms part of Develop North’s established real estate lending portfolio. Its broader shareholder-approved strategy also covers commercial and residential real estate, with a predominant focus on the North East of England.
Michelle added: “As we grow our investment activity in the North East, we continue to manage our existing portfolio to deliver value for shareholders. Each opportunity is assessed for its commercial case, the risks involved and how it fits within the wider portfolio. Successful completions such as this provide capital for further investment.”
Caroline Claydon, Director at Archibald Hotel Collection, said: “Develop North’s funding and flexible approach helped us turn our plans for 3 John’s Place into a trading hotel. We have been pleased with the response from guests since opening, and moving to a long-term commercial mortgage is an important next step for the business.
“We’re proud of what we have created in Leith and grateful for the support that helped us get here.”