Octopus Real Estate provides £18.3m loan for York development

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  • 14/07/2020
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Octopus Real Estate provides £18.3m loan for York development
Octopus Real Estate has agreed to provide Heworth Green Developments, part of North Star, with an £18.3m facility secured against a major development site in the heart of York.

 

The 8.95-acre former National Grid site has planning consent for 607 homes (CGI image pictured), and retail or community use floorspace.

Tom Frank from Ice Cubed Commercial Finance acted as the adviser.

Funding from the specialist real estate lender and investor will be used to refinance current debt, acquire the remaining part of the site, and finance the ground works and removal of a decommissioned gas holder.

Work is to start on the development later this month with the remediation and infrastructure works, allowing the construction of the new homes on the site to follow.

The site is part of a brownfield development close to York’s city-centre and a walk from York Minster and York train station.

The facility is the next funding milestone in the £85m gross development value project’s journey.

Moda Living has exchanged contracts for the private rented sector (PRS) element of the site, the first PRS scheme in York, while North Star will continue to develop 215 open market sale units.

Ludo Mackenzie, head of commercial property at Octopus Real Estate, said: “The Heworth site is the largest residential development opportunity in York. It has taken many years to get to a position where works can commence, and we are proud to be involved.”

Tom Frank, managing director of Ice Cubed Commercial Finance, added: Arranging the finance on this development has been complex, especially in the current challenging conditions.

Successful closing of the deal is testament to our close relationship with Octopus Real Estate and the client. We are very proud to play our part in delivering this fantastic high-quality development so close to our York office.”

 

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