The 30-month, 73% LTGDV loan will fund the remediation phase and subsequent construction of a 215-flat development called The Gas Works.

The scheme will comprise a mix of one-, two-, and three-bed apartments across three towers, as well as multiple amenities, including an on-site gym, flexible workspace and an outside space, including a garden where residents can grow their own fruit and vegetables.

The development is expected to reach completion in 2024.

In line with Silbury’s commitment to fund schemes that meet high environmental standards, the £74m facility includes a discount on the exit fee if North Star meets certain sustainability criteria, including a minimum B EPC rating.

Paul Ellis, director at North Star, said: “This is a complex site that had been vacant for over 20 years, which has required us to work with highly experienced partners, including Silbury Finance.

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“The team’s deep knowledge of the UK regional residential market and ability to structure bespoke facilities means that the delivery of what will be a highly sustainable and much-needed residential scheme is a step closer.”

Following this transaction and the £96.5m of funding lent at the beginning of August, Silbury has now provided over £430m of development finance across the UK residential-for-sale and retirement living sectors in 18 months — £190m of which is sustainability-linked.

Gavin Eustace, founding partner at Silbury Finance, commented: “Despite the wider market volatility and threat of a recession, the fundamentals underpinning the UK housing market remain highly compelling. 

“In particular, we anticipate continued demand for regional schemes around high-growth urban centres, which are priced sensibly and that benefit from excellent infrastructure connectivity.

“We see a real opportunity to continue growing market share, as the mid-ticket lending sector remains woefully underserved — having launched during the height of the pandemic, we have a proven track record of navigating short-term headwinds.

“We have now arrived at a point where high environmental standards for residential development are a given, from the design and construction phases onwards.

“Sustainable real estate is embedded in our DNA at Silbury, reflected by the increasing percentage of our loan book that has a sustainability-linked element, and we will continue to play our part in mitigating the effects of climate change.”