Silbury Finance provides £67 million loan for 341 home mixed tenure development in Bedford

By Bridging Loan Directory 31st July 2023

Silbury Finance (“Silbury”), the Oaktree Capital Management-backed development lender, has provided a £67 million senior loan to MCR Property Group, the established residential developer.

The 24-month facility will fund the development of 341 homes, a mix of for sale and rent, in the sought-after commuter town of Bedford. It represents the third deal between the two parties.

Since launching in January 2021, Silbury has now provided £685 million of development and investment finance for retirement living and build to sell schemes across England, with a Gross Development Value of over £1 billion.

Located on Dallas Road, two miles south-west of Bedford town centre, planning has been secured for the phased development of 297 primarily one and two bed flats for private sale, 28 town houses and 16 shared ownership properties.

Every home features a private outdoor space and underground parking bay.

Expected to complete in Q3 2025, the homes will be built to a high sustainability specification, targeting a minimum B EPC rating, whilst the development phase will see MCR utilise low carbon construction methods including PV panels, air-source heat pumps, and a Mechanical Ventilation with Heat Recovery (MVHR) system.

These technologies are designed to minimise energy consumption and reduce the project’s carbon footprint, aligning with the developer’s commitment to environmental sustainability.

Residents will benefit from the sites proximity to Bedford town centre and railway station, both being a 15 minutes’ walk from the site, with the latter connecting to Central London in under 35 minutes.

Bedford is consistently ranked as one of London’s most desirable commuter towns, owing to its combination of commute length, housing affordability, quality of schools, and overall quality of life.

Gavin Eustace, CEO of Silbury Finance commented:

“Whilst other pockets of the market retrench, we continue to support the delivery of well connected, affordably priced, mixed tenure schemes that appeal to a diverse range of customers – in this case commuters, downsizers and families – in key regional markets.

Looking through the near-term macroeconomic volatility, the UK faces an acute shortage of new homes for both sale and rent, and it will be dynamic, established developers like MCR who will be key to solving the current crisis.

Whilst funding over £1 billon of UK residential real estate in just over two years is a significant milestone for Silbury, we have much greater ambitions.

The Living sector’s long-term structural drivers remain compelling, which, coupled with our deep through the cycle expertise, funding certainty and strong deal pipeline, provides an ideal platform for growth.”

Aneel Mussarat, Founder of MCR Property Group, added:

“We remain committed to delivering high quality, sustainable homes across the UK, alongside long-term trusted partners like Silbury, who have now supported us across three developments, and truly understand both the challenges and opportunities of operating against the current backdrop.”