The new funding will enable the company to provide additional debt and equity capital to developers for eco-friendly schemes.

The investment manager, which is part of the Ingenious Group, aims for net-zero developments to account for 25% of its portfolio by December this year.

Ingenious has already begun its plans to fund more sustainable real estate schemes, having recently completed a £19m loan to Citu for the development of the Climate Innovation District in Leeds city centre.

The project will deliver over 800 new homes in four phases, using a timber-framed system designed to reduce carbon emissions at each stage of the development.

•   Property investors face 'huge risk' of stranded assets if they fail to decarbonise
•   Ingenious funds two development loans totalling £12.8m
•   Ingenious Real Estate Finance secures £25m facility from Shawbrook

Howard Sefton, investment director at Ingenious Real Estate, said: “Sustainability sits at the heart of our investment strategy and we want to support those innovative, cutting-edge projects that will be vital in pushing the boundaries of sustainable development as we aim for net-zero. 

“The Leeds Climate Innovation District represents a landmark development project in the UK, and this revolving credit facility from the speciality finance team at Shawbrook will enable us to support more such schemes, while driving further growth in our real estate development and bridging finance business.”

Luke Randell, associate director in the speciality finance team at Shawbrook Bank, said: “We share the same values as Ingenious in supporting ambitious developers to deliver innovative and sustainable schemes. 

“This credit facility will provide Ingenious with the flexibility it needs to serve their clients’ complex funding needs.

“We have a long-standing relationship with Ingenious and look forward to seeing the experienced team support more progressive schemes on the scale of the Leeds Climate Innovation District."