Oaktree Capital Management-backed development lender Silbury Finance has provided a £22m senior debt facility to residential developer Stonegate Homes, for the development of a 100-apartment scheme in Hove, East Sussex.
The 17-month facility, funded at 70% LTGDV, will support Stonegate’s transformation of a seven floor vacant office block into 100 one- and two-bed apartments and penthouses for sale.
The development, which is located on the outskirts of Hove, offers panoramic views across Brighton and the south coast.
Gavin Eustace, founding partner at Silbury Finance, said: “Regional developers are the lifeblood of UK housing, a sector that remains one of our conviction calls given the structural undersupply dynamic. Despite the challenging backdrop, we will continue to fund well capitalised borrowers like Stonegate, which has a track record of delivering successful schemes across the South East.
“Furthermore, as a refurbishment rather than new development, the embodied carbon of this scheme will be greatly reduced, which aligns with our own commitment to delivering sustainable real estate.”
Jerry Hinds, founder and director of Stonegate Homes, added: “We are very pleased to have completed our development finance facility with Silbury Finance on our 100 unit residential development in Hove. The construction works are progressing well and we are aiming to deliver this first phase of the development in Q2 2023.
“The site is well located in the centre of Hove in close proximity to Sussex Country Cricket Club ground and we have had strong buyer interest in the site. We thank the Silbury team for their support on this project and look forward to working with them on future projects.”
