The recently launched development lender has agreed to provide MCR Property with two senior loans totalling £51m to fund the development of two residential schemes in High Wycombe and Rochester.
It will also lend £3m to support a project in Stoke Newington.
The transactions take Silbury Finance’s total lending in the UK living sector to circa £160m.
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The three transactions comprise:
- a 24-month, £37.3m facility to MCR Property, which will fund the development of 228 one- and two-bedroom apartments, alongside a small office and 175 car parking spaces
- an 18-month, £13.9m loan, also to MCR Property, to fund the conversion of the former St Bartholomew’s hospital in Rochester into 86 mixed-tenure residential units, expected to complete later this year
- an 18-month, £3m facility to a joint venture between Orlandis and Artform to fund the development of eight apartments — a mix of one-, two- and three-beds, in Stoke Newington
Matthew Pritchard, founding partner of Silbury Finance, commented: “The UK residential sector is one of our conviction calls, with its resilience since the start of the pandemic further endorsing our belief in the long-term fundamentals, with the ongoing critical shortage of suitable homes the most notable of these.
“All three of these schemes are in strong performing submarkets and benefit from excellent connectivity.
“In line with our commitment to taking a disciplined approach to underwriting, both counterparties have a strong track record delivering high quality schemes across the UK.
“We are confident in the strength of the UK residential market and remain on track to reach our £400m lending target by year end.”
The lender — which is backed by funds managed by Oaktree Capital Management — provides bespoke senior development finance solutions for property professionals active in the UK residential, retirement and student accommodation sectors, and is targeting up to £3bn of lending over the next six years.