Silbury Finance has upsized and extended an existing £68m facility to Avanton with a new £33m commitment to fund the delivery of an additional 30 homes at the developer’s Old Kent Road redevelopment.
Avanton is delivering 292 mixed-tenure homes across two blocks on the site of a former Carpetright warehouse. The revised scheme, which has a GDV of circa £160m, is due to complete in 2027, with 40% of the homes already pre-sold.
To date, Silbury, which is backed by Oaktree Capital Management, has funded nearly £1.5bn GDV of development schemes across the UK, and is targeting circa £500m of new lending this year.
Gavin Eustace, CEO of Silbury Finance, said: “This is the optimal outcome for one of our longest-standing clients. The last couple of years have 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 means 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 of Avanton, added: “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.”
