Silbury Finance, the Oaktree Capital Management-backed development lender, has provided a £73.8 million senior debt facility to North Star Investment Management, Yorkshire’s premier creative property asset management company, to fund the development of a residential-for-sale scheme in York.
The 30-month, 73% LTGDV facility is the largest loan Silbury has originated to date. It will fund the remediation phase and subsequent construction of a 215 flat scheme on the Gas Works at Heworth Green site, in a prime city centre location.
In line with Silbury’s commitment to funding real estate schemes that meet the highest environmental standards, the facility includes a discount on the exit fee if North Star meets certain sustainability criteria, including a minimum high B EPC rating.
Known as The Gas Works, the scheme, which is expected to complete in 2024, will be built to the highest sustainability standards with best-in-class amenities and tenant wellbeing at its centre. Comprising a mix of one, two and three bed apartments, across three towers, features will include an onsite gymnasium offering studio classes, flexible workspace and an abundance of outside space, including an edible garden where residents can grow their own fruit and vegetables.
The site forms part of the wider Heworth Green Gas Works site and is ideally located just a short walk from York city centre, whilst York railway station is a 20-minute walk.
Following this transaction and the c. £100 million of financing announced last week, Silbury has now provided over c.£430 million of development finance across the UK residential-for-sale and retirement living sectors in 18 months, of which £190 million is sustainability linked.
