Silbury Finance, the Oaktree Capital Management-backed UK property development lender, has provided a £73.8m (€87m) facility to North Star Investment Management.

Silbury Finance said the 30-month senior debt facility will help fund the development of a residential-for-sale scheme in York. It will fund the remediation phase and subsequent construction of a 215 flat scheme on The Gas Works project at the Heworth Green site.

The Gas Works scheme, which is expected to complete in 2024, forms part of the wider Heworth Green Gas Works site and is located just a short walk from York city centre.

Paul Ellis, Director of North Star, said: “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.”

Silbury Finance said, following this transaction and the £100m of financing announced last week, it has now provided over £430m of development finance across the UK residential-for-sale and retirement living sectors in 18 months, of which £190m is sustainability linked.

Gavin Eustace, a founding partner at Silbury Finance, said: “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.”

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