Silbury Finance (Silbury) has upsized and extended an existing c. €81m facility to Avanton with a new c. €39.3m commitment, which will fund the development of an additional 30 homes at Avanton’s landmark Old Kent Road redevelopment.
The former Carpetright warehouse will now total 292 mixed-tenure homes over two blocks, with the additional homes, for which planning has been secured, a requirement for the inclusion of a second staircase. The revised scheme, which has a GDV of c. €190.4m, is due to complete in 2027, with 40% of the homes already pre-sold.
Gavin Eustace, CEO of Silbury Finance commented: “This is the optimal outcome for one of our longest-standing clients. The last couple of years has seen developers grappling with an evolving regulatory landscape, which has forced many to make changes mid-scheme. Our residential sector expertise and discretionary lending strategy mean we are comfortable adjusting our lending proposition to support clients, which is paramount to growing the loan book whilst fostering long-term sponsor relationships. Having focused on consolidating our loan book last year, 2025 sees us in high deployment mode – our current deal pipeline is at its highest since 2023, reflecting our conviction that the economic backdrop will continue to improve throughout the year.”
Omer Weinberger, CEO at Avanton, commented: “We are pleased with the result and collaboration we have with Silbury and HGP. We are pleased we were able to creatively deliver several value-engineering items to enhance the forecasted profitability as well. With over 40% of the homes pre-sold, we are excited for this project to enter the next stage of development. Our thanks to Silbury for their ongoing support and flexibility, as their strength of funding and committed capital meant that they were able to support a significant step up in the project.”
James Hutchinson, Investment Director at HGP, said: “HGP is delighted that Avanton was able to expertly steer the project through the planning process to enhance value and drive the project forward. Against a difficult market backdrop, Silbury demonstrated supportive funding partner behaviours throughout, and we look forward to seeing the scheme come forward.”
Image source - Silbury.
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