OakNorth completes £8.6m deal for new property scheme in Birmingham

OakNorth has completed an £8.6m deal with Galliard Homes and Apsley House Capital.

The loan will be used to acquire a 254,400 sq ft vacant site in Birmingham which formerly housed Joseph Chamberlain Sixth Form College and convert it into a mixed-use scheme.

Jonathan Morgan, Galliard’s director, said: “By 2039, Birmingham’s population is expected to increase to 1.3 million meaning that the city is in desperate need of new homes and more office space.

“Unfortunately, it’s currently falling well below the revised 4,000 new residential units needed per annum target to keep up with demand, with the total for 2018 expected to be around 2,777.

“In terms of commercial, the 2019/2020 will see a spike in the volume of lettings as occupiers which took five-year leases in 2014 look to relocate.

“That’s why we hope to secure the planning permission needed to deliver this mixed-use scheme in an area that has been identified as a priority for regeneration by the City Council, as per the Balsall Heath Neighbourhood Development Plan.”

To ensure planning permission was applied for within the company’s desired time frame, the correct lender was needed. Having worked with OakNorth already, Galliard chose the firm to assist with this project.

Damien Hughes, senior property finance director at OakNorth, added: “Both Galliard and Apsley House Capital share Birmingham City Council’s vision of it being a great place in which to live and work.

“Over the last five years, they have assembled a residential portfolio in the city with a potential GDV in excess of £500m, including the 750-unit Soho Loop site and the 500-unit in Birmingham’s Jewellery Quarter - both of which we provided the funding for.

“We’re delighted to be working with them both again and wish them the best of luck in their application for planning permission.”