Silbury Finance has agreed to provide MCR Property with two senior loans, totalling €59.4m (£51m), to fund the development of two residential schemes, in High Wycombe and Rochester. Along with a third, €3.5m (£3m) loan, to support development in Stoke Newington, the transactions take Silbury Finance’s total lending in the UK Living sector to c.€186.3m (£160m). The three transactions, which will fund the development of 322 homes in total, all for-sale, comprise:
- A 24-month, €43.4m (£37.3m) facility to MCR Property, the established residential property company which has acquired and developed over €4.6bn (£4bn) of UK real estate. The loan will fund the development of 228 one and two-bed apartments, alongside a small office and 175 car parking spaces. Situated round an exquisitely designed central courtyard, providing a fusion of Victorian industrial architecture and modern luxury, the scheme, which will incorporate the latest in sustainable building design, occupies a central High Wycombe location, less than five minutes’ drive from Junction 4 of the M40. High Wycombe train station, which connects to Marylebone in 27 minutes and Birmingham in 75 minutes, is a short walk away.
- An 18-month, €16.2m (£13.9m) loan, also to MCR Property, to fund the conversion of the former St Bartholomew’s hospital in Rochester, 30 miles east of Central London, into 86 mixed tenure residential units. The project will complete later this year and provide much needed affordable units in the southeast.
- An 18-month, €3.5m (£3m) facility to a Joint Venture between Orlandis and Artform, to fund the development of eight apartments, a mix of one, two and three-bed, in Stoke Newington, N16. Construction work at the property, which is strategically located less than one kilometre from Stoke Newington tube station, is underway and is expected to complete in Q4 2021.
Matthew Pritchard, Founding Partner of Silbury Finance, commented: “The UK residential sector is one of our conviction calls, with its resilience since the start of the pandemic further endorsing our belief in the long-term fundamentals, with the ongoing critical shortage of suitable homes the most notable of these. All three of these schemes are in strong performing submarkets and benefit from excellent connectivity. In line with our commitment to taking a disciplined approach to underwriting, both counterparties have a strong track record delivering high-quality schemes across the UK. MCR Property in particular has grown to become a sizeable residential developer and we are excited to be backing them on two good schemes. We are confident in the strength of the UK residential market and remain on track to reach our €465.7m (£400m) lending target by year-end.”