The Oaktree Capital Management-backed lender has provided developer Avanton with a £68m stretch loan to fund the redevelopment of the former Carpetright warehouse on the Old Kent Road into 262 mixed-tenure flats (GCI pictured above).

The project will also include 92 affordable units across the two towers at Avanton’s landmark regeneration project, known as The Ruby.

Construction of the sustainable scheme will commence in September, with the first homes ready for residents in H2 2024, and the remainder in the early part of 2025.

Alongside 23,142 sq ft of commercial space, residents will benefit from two adjoining squares and a community park.

In Reading, Silbury Finance has provided Kings Oak Capital with a £28.5m acquisition and development loan in prime central Reading.

The 24-month facility, at 69% LTGDV, will support the borrower’s conversion of an office block — formerly the UK headquarters of Three — into 110 flats.

The construction phase of the 2.6-acre site is expected to complete in H2 2023.

“Against a backdrop of high inflation and rising interest rates, the UK urban residential sector continues to demonstrate its defensive characteristics and remains one of our conviction calls,” said Gavin Eustace, founding partner at Silbury Finance.

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“These schemes have been designed with resident wellbeing at their centre, occupying high-growth urban neighbourhoods with an abundance of green space and benefitting from excellent infrastructure connectivity.

“As we remain on target to reach half-a-billion-pounds of lending by the end of 2022, we will remain highly disciplined, targeting structurally undersupplied sectors and partnering with experienced developers with a track record of delivering successful projects.”

Omer Weinberger, CEO at Avanton, commented: “Securing this finance package is a major milestone for our Old Kent Road ambitions, where we are delivering a range of housing types to meet the urgent need of Londoners.

“The Silbury Finance team has deep experience in this part of the market, which now more than ever is critical, and we look forward to growing the relationship.”

Deepak Khullar, managing director at Kings Oak Capital, added: “The support from Silbury Finance will allow us to deliver 110 apartments in a location where demand has continued to outpace supply.

The scheme is well located for residents and will benefit from the newly opening Crossrail Line, with the mainline station on the doorstep of this site.

The conversion of office buildings continues to be a sustainable way to combat the housing crisis and we are excited to bring this project to fruition.”

In less than 18 months, Silbury Finance has lent almost £335m of development finance across the UK residential-for-sale and retirement living sectors.