215 'affordably priced' flats set to be built on former gas works site in York

Silbury Finance, the Oaktree Capital Management-backed development lender, has provided a £73.8m senior debt facility to North Star Investment Management, to fund the development of a residential-for-sale scheme in York.

It will fund the remediation phase and construction of a 215 flat scheme on the Gas Works at Heworth Green site.

A spokesman said that demand for affordably priced, residential schemes in city centres has been underpinned by an acute shortage of stock.

A spokesman said: "Known as The Gas Works, the scheme, which is expected to complete in 2024, will be built to the highest sustainability standards with best-in-class amenities and tenant wellbeing at its centre.

"Comprising a mix of one, two and three bed apartments, across three towers, features will include an on site gymnasium offering studio classes, flexible workspace and an abundance of outside space, including an edible garden where residents can grow their own fruit and vegetables."

"The site forms part of the wider Heworth Green Gas Works site and is located just a short walk from York city centre, while York railway station is a 20-minute walk away."

Gavin Eustace, Founding Partner at Silbury Finance, commented: “Despite the wider market volatility and threat of a recession, the fundamentals underpinning the UK housing market remain highly compelling.

"In particular, we anticipate continued demand for regional schemes around high growth urban centres, which are priced sensibly and that benefit from excellent infrastructure connectivity.

"We see a real opportunity to continue growing market share: the mid-ticket lending market remains woefully underserved, and having launched during the height of the pandemic, have a proven track record of navigating short term headwinds.

“We have now arrived at a point where high environmental standards for residential development are a given, from the design and construction phases onwards. Sustainable real estate is embedded in our DNA at Silbury, reflected by the increasing percentage of our loan book that has a sustainability linked element, and we will continue to play our part in mitigating the effects of climate change.”

Paul Ellis, Director of North Star commented: “This is a complex site that had been vacant for more than 20 years, which has required us to work with highly experienced partners, including Silbury Finance. The team’s deep knowledge of the UK regional residential market and ability to structure bespoke facilities means the delivery of what will be a highly sustainable and much needed residential scheme is a step closer.”