Charles Russell Speechlys advises Silbury Finance (backed by Oaktree Capital Management) on a £73.8m senior debt facility
Charles Russell Speechlys advises Silbury Finance (backed by Oaktree Capital Management) on a £73.8m senior debt facility to a property asset management company to finance the development of 215 unit residential-for-sale scheme in York known as The Gasworks. The city centre development is expected to complete in 2024 and it will offer luxury apartments with on-site amenities such as gyms, coffee shops and flexible workspace.
This is a landmark transaction for Silbury Finance as the facility is the largest loan that it has originated to date. In line with Silbury Finance’s desire to encourage and support its borrowers to meet their EGS goals, the transaction includes a financial incentive for the borrower by way of discount on the exit fee if the development achieves an improved SAP rating.
The site forms part of a former gas works which meant that the transaction involved complex issues relating to remediation works and contamination issues.
Jon Bond (partner at Charles Russell Speechlys) commented, “We are delighted to have worked with Silbury again on this significant and complex transaction supporting the development of a brownfield site into regional urban housing stock built which has sustainability at the core of both the development and the financing . We look forward to working with Silbury on future deals”.
Speaking of the deal, founding partner Gavin Eustace commented, “Charles Russell Speechlys’ expertise and guidance on a series of complex issues has been invaluable on our largest transaction to date. This is a key transaction for us as we continue to invest in the UK housing market and it reflects our focus on sustainable real estate development”.
The Charles Russell Speechlys team was led by Jon Bond, with Cara Whiffin (Banking and Finance), Mark Smith, Simon Ewing, Aidan Welton and Ruby Dalal (Real Estate), Andrew Keeley (Construction) and Lydia O’Hagan (Planning).
