Based in Newcastle, Benfield has been labelled as one of the largest private dealer groups in the UK with a network of 34 franchised dealerships throughout the North East of England, Yorkshire and the North West.
The £40m spend, funded by the Royal Bank of Scotland Corporate and Institutional Banking and supported by Barclays Bank, will support the development of three new motor dealerships in the region.
The new outlets include Ford in Sunderland, which is scheduled to open in January 2014, an Audi dealership in Newcastle, due to open in July 2014, and finally Audi in Sunderland, which will in 2015.
Gerard Murray, finance director, Benfield Motor Group, 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.’
David Wilkinson, relationship director at Royal Bank of Scotland Corporate and Institutional Banking, added: ‘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. I am confident that Benfield will continue to have a very successful, strong future.’