Silbury Finance provides a sustainable £74 million loan for York development

Development lender, Silbury Finance, has provided a £73.8 million senior debt facility to North Star Investment Management, a creative property asset management company.

The loan will fund the construction of a 215 flat scheme on the Gas Works at Heworth Green site and the remediation phase. 

As a 73% LTGDV facility that will last 30 months, this is the largest loan Silbury has provided.

Silbury’s sustainable commitments

Silbury aims to meet the highest environmental standards through all of the real estate schemes it funds. If North Star meets the sustainability criteria, which includes a minimum high B EPC rating, a discount on the exit fee will be granted.

More than £430 million of development finance across the UK residential-for-sale and retirement living sectors has been provided by Silbury, and £190 million of this has been sustainability linked.

Gavin Eustace, founding partner at Silbury Finance, commented: “We have now arrived at a point where high environmental standards for residential development are a given, from the design and construction phases onwards. Sustainable real estate is embedded in our DNA at Silbury, reflected by the increasing percentage of our loan book that has a sustainability-linked element, and we will continue to play our part in mitigating the effects of climate change.”

What the scheme will include

The scheme will be a mix of one, two, and three-bedroom apartments, across three towers. An onsite gymnasium with studio classes, flexible workspace, outside space, and an edible garden will be included.

Once complete in 2024, residents will be a short walk away from York city centre. The nearest station will be York railway station, only 20 minutes away. 

Eustace added: “Despite the wider market volatility and threat of a recession, the fundamentals underpinning the UK housing market remain highly compelling. In particular, we anticipate continued demand for regional schemes around high growth urban centres, which are priced sensibly and that benefit from excellent infrastructure connectivity. We see a real opportunity to continue growing market share: the mid-ticket lending market remains woefully underserved, and having launched during the height of the pandemic, have a proven track record of navigating short term headwinds.

Paul Ellis, director of North Star, commented: “This is a complex site that had been vacant for over 20 years, which has required us to work with highly experienced partners, including Silbury Finance. The team’s deep knowledge of the UK regional residential market and ability to structure bespoke facilities means the delivery of what will be a highly sustainable and much needed residential scheme is a step closer.”