Since its launch in January 2021, the lender originated £554m of new finance for the retirement sector (47%) and build-to-sell (53%) sectors to 11 different borrowers across 15 loans, with the gross asset value reaching over £800m.

Of the total committed finance, £220m has been sustainability linked, incentivising borrowers to deliver schemes that meet high environmental standards.

Silbury Finance reached the milestone after completing a £64.3m loan for a joint venture vehicle established by Elysian Residences and Senior Living Investment Partners — a partnership between Pension Insurance Corporation and Octopus Real Estate.

The facility will fund the acquisition and development of a 124-residence luxury retirement scheme by Elysian Residences in How Wood, St Albans.

The project will comprise 80 apartments and 44 two-bedroom bungalows, as well as various amenities, including a restaurant, café/bar, library, wellbeing and therapy centre, cinema, village green and orchard gardens.

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Gavin Eustace, founding partner at Silbury Finance, said: “Exacerbated by the retrenchment from the sector caused by the Covid pandemic, we have witnessed unprecedented and increasing enquiry levels from a range of borrowers, from global institutions through to dynamic regional SMEs, for our bespoke capital solutions.

“We retain a high conviction in the structurally undersupplied living sector, which continues to demonstrate attractive countercyclical characteristics and is underpinned by highly favourable demographic and societal drivers.

“Backed by a deeply experienced global real estate investor in Oaktree, and with further market dislocation likely as result of the challenging economic backdrop, we have ambitions to accelerate our deployment in 2024.

“While remaining highly disciplined in our underwriting, we have a strong pipeline of borrowers seeking flexible funding solutions for high-quality and environmentally responsible schemes.”

Gavin Stein, CEO at Elysian Residences, commented: “We are delighted to be progressing a new market-leading community in St Albans with the Pension Insurance Corporation (PIC) and Octopus Real Estate. 

“Senior Living Investment Partners is further proof that this rapidly growing alternative residential sector is fulfilling its potential to deliver at an institutional level.

“Careful consideration of the market has revealed St Albans to be a prime location for development of a luxury retirement scheme, with strong demand anticipated from local people aged 65+ whose choices are limited in the immediate area.”