Octopus Real Estate – part of Octopus Group, a UK specialist real estate lender and investor – has agreed to provide Heworth Green Developments, under the North Star banner, with an £18.3m facility secured against a major development site in the heart of York. Tom Frank from Ice Cubed Commercial Finance acted as the adviser.
“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.”Tom Frank, Managing Director, Ice Cubed Commercial Finance
The 8.95-acre former National Grid site has planning consent for 607 homes and retail or community use floorspace. The £18.3m facility is the next funding milestone in the £85m GDV development journey. The majority of the site will include Build to Rent homes – Moda Living has exchanged contracts for this element of the site, the first PRS scheme in York. North Star will develop the remining 215 homes for sale to the open market.
“Securing this funding deal is another major milestone in the project. The journey to transform this large, brownfield site into a vibrant new community has taken over 18 months so far and we are very excited to see it now coming to fruition.
“This will now enable us to start construction works on the site, and the first step will be to remediate the site which will start very shortly. Our aim is to create a high-quality sustainable development that York can be proud of and we are committed to delivering the development, even in these challenging times.”Spokesperson, North Star
The site is part of a major brownfield development close to amenities. It’s north of York’s city centre, a short walk from York Minster and a 25-minute walk from York train station. With extensive communal and private open spaces, the scheme offers a unique opportunity for future residents.
The £18.3m facility 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. Works will start on the development later this month with the remediation and infrastructure works – allowing construction of the new homes to follow.
“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.”Ludo Mackenzie, Head of Commercial Property, Octopus Real Estate