Oaknorth funds new Build-to-Rent scheme in Ashford with £34.9m loan

By Bridging Loan Directory 18th May 2023

OakNorth, the neobank for entrepreneurs, by entrepreneurs – has provided a £34.9m loan to integrated property development business, Kings Crescent Homes.

Founded by Nick Harvey-Jones and Radu Dinului-Mereantu, Kings Crescent Homes specialises in delivering large-scale projects, including all main elements of construction.

Headquartered in London’s Highbury, the developer is currently delivering over 800 units from Hove up to Birmingham, which includes 255 units in Birmingham’s Jewellery Quarter, 148 units in Brighton and Hove and 146 units in phase one of the Ashford Victoria Road masterplan.

The £34.9m capital from OakNorth Bank will support Kings Crescent Homes’ major new UK residential scheme in Ashford, Kent, comprising of 254 BTR units across four separate buildings, including a mix of studio, one, two and three-bedroomed apartments with modern specifications.

The scheme borders the River Stour and Victoria Park and is situated a short walk from Ashford’s popular town centre.

The site is also within close proximity to Ashford International Station, offering regular trains into central London via HS1, with residents provided with 229 parking spaces and numerous EV charging points.

Nick Harvey-Jones, CEO of Kings Crescent Homes, commented:

“Following on from the success of our 146 units Phase one scheme, we’re extremely excited to develop this well-located and attractively designed Phase two BTR scheme in Central Ashford.

For a very affordable price point, this development will offer premium spec units with views of the neighbouring Victoria Park and River Stour, in one of the UK’s fastest growing towns which benefits from high-speed rail connections which can get you to Central London in circa 30 minutes.

This was our first time working with the team at OakNorth and we found their approach transparent and consistent throughout.

Anirudh and the team knew the region’s residential property market expertly well and they were able to provide us with a truly bespoke financial package to support the project.”

Anirudh Kare, Associate Director of Debt Finance at OakNorth Bank, said:

“This transaction presented us with a great opportunity to build relations with the hugely talented team at Kings Crescent Homes, as they look to execute on their exciting expansion plans across the UK.

The spectacular location given HS1’s connectively to London, Ashford’s booming job market and upcoming film production hub and the demand and supply dynamics within the local market, made this a very attractive proposition for us and we expect the units to be very popular amongst young professionals and growing families.

We look forward to watching the buildings take shape and supporting Kings Crescent Homes on its future real estate projects.”

Chiara Zuccon, Head of Residential Debt at CBRE, added:

“The experience, network, pragmatism and integrated offering provided by Kings Crescent Homes makes them an ideal partner for institutional investors looking to increase their exposure to UK housing market and for lenders seeking to build relationships with capable developers.

We look forward to a continued relationship with KCH and their extensive pipeline and to see them going from strength-to-strength.”

CBRE is the debt advisor to Kings Crescent Homes.