United Trust Bank has provided £13m in acquisition and development finance for a 33-home residential scheme in Birkdale, a coastal location in the North West. The funding has been extended to Oakwood Group, a regional housebuilding company established in 2014.
The development will convert a former utility site into a mix of 18 detached houses, 11 semi-detached homes and four duplex apartments, with a total gross development value of approximately £19m. Several properties will have views across Royal Birkdale Golf Course towards the coast.
Financing structure
The £13m facility represents 68.5% loan-to-gross-development-value and 89% loan-to-cost. This follows United Trust Bank’s previous £12m funding for another Oakwood Group development, which is nearing practical completion. The arrangement reflects continued activity in the development finance sector as lenders support regional housebuilders.
All homes in the scheme will achieve an EPC A rating, targeting buyers focused on energy efficiency and lower operating costs. The properties will feature open-plan living spaces and contemporary finishes.
Developer commentary
Jonathon Ball, founder of Oakwood Group, said the company had invested considerable time progressing the scheme through planning. “It has been great working with Huw and the UTB team once again,” Ball stated.
Huw Jenkins, senior director of property development at United Trust Bank, described the project as supporting an experienced developer on an increasingly ambitious scheme. “Birkdale remains one of the North West’s most desirable residential locations,” Jenkins said.
The development targets family buyers and downsizers in a market where sales stock has been rising while rental properties decline. Construction is now underway on the site.
