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22 November 2021

Charles Russell Speechlys advises Silbury Finance on a £35m facility to a Jersey unit trust to finance the development of a retirement living village

Charles Russell Speechlys advises Silbury Finance (backed by Oaktree Capital Management) on a £35m facility to a Jersey unit trust (backed by a joint venture between a fund managed by Schroders Capital (advised by Octopus Real Estate) and Elysian Capital) to finance the development of a 89 unit retirement living village in Tunbridge Wells, Kent. The complex will include leisure facilities and has support services available on site for the community. 

The transaction involved complex property buyback arrangements and reversionary leasehold structures relating to the operation of the site. The nature of the asset and the projected income stream (e.g. deferred management fees) also required detailed analysis to ensure that our client’s position was protected. Charles Russell Speechlys also led discussions on environmental sustainability targets, notably a financial incentive for the borrower if the development achieves an improved BREEAM rating, reflecting Silbury Finance’s desire to encourage and support its borrowers to meet their ESG goals.

This is the third retirement living deal that Charles Russell Speechlys has completed for Silbury Finance and is a key transaction for them as they target £350m of lending this year in the retirement living sector. Jon Bond (partner at Charles Russell Speechlys) commented, “We were delighted to assist Silbury Finance again on this transaction, whose presence and reputation in the retirement living sector has grown significantly in the last year.”

Charles Russell Speechlys has considerable experience is this area and was well-placed to advice Silbury Finance on all elements of the transaction (including banking and finance, real estate, construction, planning and ESG issues).

Speaking of the deal, founding partner Gavin Eustace commented “It was a pleasure to work with Charles Russell Speechlys again. 2021 has been a successful year for Silbury Finance so far as we continue to invest in the growing retirement living sector. Charles Russell Speechlys’ expertise and support has been invaluable”.  

The Charles Russell Speechlys team was led by Jon Bond, with Cara Whiffin and Isobel Young-Herries (Banking and Finance), Simon Ewing (Real Estate), Chris Carlisle (Real Estate), Andrew Keeley (Construction), Melanie Hardingham (Construction) and Lydia O’Hagan (Planning).

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