OakNorth completes £22m loan deal for new residential scheme in York
Property development firm Newby has secured a debt finance deal of £22m with the London-based bank OakNorth.
The finance has been used to acquire a vacant office building in the centre of York with permitted development rights for a 77-unit scheme.
Ryedale House, the eight-storey vacant office building, sits adjacent to the River Foss and Clifford’s Tower. The residential scheme will comprise 21 one-bedroom, 49 two-bedroom and seven three-bedroom apartments.
Situated on Piccadilly in the centre of York, within the York City walls, the area immediately surrounding the property is commercial and residential with a mixture of houses, retail and office space.
Nick Moody and Simon Hepden, co-founders of Newby, said: “York is a highly sought-after historic city and is considered one of the best places to live in the UK. It boasts a rich cultural heritage, magnificent architecture, a leading university, historic attractions, shopping and a lively restaurant and bar scene.
“We have completed numerous projects in the region but are particularly excited about this one given its prime central location as well as the size of the scheme. We appreciated the speed at which OakNorth operates and thoroughly enjoyed meeting the Credit Committee.
“We have done several transactions with banks in the past, but this was the first time we got to meet the decision makers face to face – a very interesting and refreshing experience.”
In a joint statement, Ben Barbanel, head of debt finance, and Eamonn O’Rourke, property finance director at OakNorth, commented: “The team at Newby are well acquainted with the Yorkshire market having completed a number of projects in the region with many more in the pipeline.
“They are diverse and flexible in their approach, undertaking joint ventures for larger schemes and using a combination of senior debt and their own resources for smaller ones.
“Between them, Nick and Simon have over 55 years’ experience in the property industry, delivering and overseeing many complex, high value schemes throughout the UK and Europe.
“Given York’s increasing popularity and Newby’s exceptional track-record, we have no doubt that the scheme will do extremely well and look forward to working with the team on future developments.”