£100m of funding for Old Kent Road & Reading residential developments
Silbury Finance, the Oaktree Capital Management-backed development lender, has completed two senior development facilities, totalling £96.5 million, to fund the delivery of residential-for-sale schemes on the Old Kent Road, SE15, and in Reading.
Silbury has provided Avanton, the London property developer, with a £68 million stretch facility. It will fund the redevelopment of the former Carpetright warehouse into 262 mixed tenure flats, including 92 much needed affordable units, across two towers, at Avanton’s landmark regeneration project on the Old Kent Road, known as The Ruby.
Offering residents panoramic views over the London cityscape, construction of the sustainable scheme will commence in September, with the first homes ready for residents in H2 2024 and the remainder in the early part of 2025. Alongside 23,142 sq ft of commercial space, residents will benefit from two adjoining squares and a community park as well as the areas excellent public transport connectivity, with both Bank and Oxford Circus tube stations less than 30 minutes away.
In a second transaction, in Reading, Silbury has provided Kings Oak Capital with a £28.5 million acquisition and development loan. The 24-month facility, at 69% LTGDV, will support the borrower’s conversion of an office block, formerly the UK headquarters of Three, into 110 flats, with the construction phase expected to complete in H2 2023.
The 2.6-acre site occupies a prime central Reading location, benefitting from its proximity to Reading Station, where Crossrail services commenced earlier this year, as well as views of the River Thames.
Following these transactions, Silbury has now provided nearly £335 million of development finance across the critically undersupplied UK residential-for-sale and retirement living sectors in under 18 months.