Reditum backs ex-Ashley Newcastle scheme

Reditum Capital has backed the High Street Group’s acquisition of the remaining stake in Strawberry Place, a large development in Newcastle previously owned by Mike Ashley. At the start of the year, EG reported that the High Street Group had bought a controlling stake in the £120m mixed-use scheme. Reditum has provided a £10m bridging facility to complete the acquisition from Helios Investment Partners and Marrico Asset Management, enabling development to move forward. The site is adjacent to Newcastle United’s football ground and has consent for two towers of up to 21 storeys with 328 flats, a 200-bedroom hotel and a 12-storey, 115,000 sq ft office block. Mike Ashley sold the scheme controversial last year. It has generated backlash from fans, who fear high-rise development will block views of the stadium and prevent expansion of the football grounds. Mark Stephen, founder and managing director of Reditum Capital, said: “The deal represents positive news for a credit market temporarily set back by Covid-19 uncertainty. We are one of the few financiers still well-capitalised and prepared to provide short-term financing for high-quality developments.” To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette