Silbury Finance has secured two senior loans totaling £43m to finance the development of two residential projects in London and Bath.
The first facility of £23.8m – agreed to 63% LTGDV for a 34 month term – was provided to WMG Aldgate LTD for the construction of a 17 storey tower block in Aldgate, London.
The program will include 49 residential units and 2,850 square feet of commercial space, which will be delivered by Unique Property Group.
It will incorporate the latest innovations in sustainable building design and is expected to be completed in the first half of 2024.
The second facility of £19.3million – agreed for a term of 30 months – was provided to C-Group Developments for the construction of 95 one, two and three bedroom homes for sale in Bath.
Occupying a prime riverside location on the outskirts of the city centre, the project will also include flexible workspace provision and a gym, and is due for completion in early 2024.
Both loans include an exit fee discount for borrowers if the projects meet certain sustainability criteria.
Sonny Gowans, Managing Director of Unique Property Group, said: “We needed a bespoke facility reflecting the multi-phase nature of the scheme, which the team were able to structure, reflecting their experience and in-depth knowledge of the sector. .
“It was fantastic to work with Silbury Finance and we are happy to be associated with this project.”
In its first year of business, Silbury Finance provided over £240m of senior development finance across eight loans in the UK retirement and residential sectors.
Gavin Eustace, Founding Partner of Silbury Finance, said: “Despite the current macro-economic uncertainty, the UK residential market has had an excellent year in 2021, driven by a chronic imbalance of supply and demand, the environment for favorable borrowing and the continued attraction of home ownership. .
“In particular, programs with strong ESG credentials in submarkets with good connectivity and that appeal to a diverse demographic will be central to our origination.
“Sponsor strength is a key criterion in our lending decisions, and C-Group Developments and Unique Property Group are established developers with a proven track record.
“With significant funding capacity, we continue to screen a wide range of opportunities, with a particular focus on larger developments – part of the market remains underserved by debt providers.”