Octopus Real Estate, part of Octopus Group and a leading UK specialist real estate lender and investor, has agreed to provide Heworth Green Developments, under the North Star banner, with an £18.3 million facility secured against a major development site in the heart of York.
The 8.95-acre former National Grid site has planning consent for 607 homes, as well as consent for retail or community use floorspace.
The 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. Work will start on the development later this month with the remediation and infrastructure works, allowing the construction of the new homes on the site to follow this.
The site is part of a major brownfield development close to amenities – just 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 in York for future residents.
The £18.3 million facility is the next funding milestone in the £85 million GDV development journey. Moda Living has exchanged contracts for the PRS element of the site, the first PRS scheme in York, while North Star will continue to develop 215 open market sale units.
Ludo Mackenzie, Head of Commercial Property at Octopus Real Estate, said: “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.”
A spokesperson for North Star commented: “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.”
Tom Frank from Ice Cubed Commercial Finance acted as the adviser.