Silbury Finance

Silbury Finance completes two development loans totalling £43m

Silbury Finance has completed two senior loans totalling £43m to fund the development of two residential schemes in London and Bath.

The first facility of £23.8m — agreed at 63% LTGDV on a 34-month term — was provided to WMG Aldgate LTD for the construction of a 17-storey tower in Aldgate, London.

The scheme will comprise 49 residential units and 2,850 sq ft of commercial space, which will be delivered by Unique Property Group.

It will incorporate the latest in sustainable building design and is expected to complete in H1 2024. 

The second, £19.3m facility — agreed on a 30-month term — was provided to C-Group Developments for the construction of 95 one-, two- and three-bedroom homes for sale in Bath. 

Occupying a prominent riverside location on the edge of the city centre, the scheme will also include a flexible workspace offering and gym, and is expected to complete in early 2024.

Both loans include a discount on the exit fee for the borrowers if the projects meet certain sustainability criteria.

Sonny Gowans, managing director at Unique Property Group, said: “We required a bespoke facility reflecting the multi-phased nature of the scheme, which the team was able to structure, reflecting its experience and deep sector knowledge.

“Silbury Finance was fantastic to work with and we are glad to have partnered with it on this project.”

In its first year of operation, Silbury Finance has provided over £240m of senior development financing across eight loans in the UK retirement living and residential sectors.

Gavin Eustace, founding partner at Silbury Finance, commented: “Despite ongoing macro-economic uncertainty, the UK residential market enjoyed a stellar 2021, driven by a chronic demand-and-supply imbalance, the favorable borrowing environment and the ongoing appeal of home ownership. 

“In particular, schemes with strong ESG credentials in sub-markets with good connectivity and which appeal to a diverse demographic will be the focus of our origination.

“Sponsor strength is a key criterion in our lending decisions, and both 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 — a part of the market remains underserved by debt providers."

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