Oaktree-backed lender provides £51m to Manchester developer

Oaktree-backed Silbury Finance has agreed two senior loans to MCR Property for schemes in High Wycombe, Buckinghamshire, and Rochester, Kent. It has agreed £51m in finance for Manchester-based MCR to develop 314 homes across two schemes. Silbury has provided MCR Property with £37.3m in a 24-month facility to fund the development of 228 homes and an office in High Wycombe. The lender has also agreed a £13.9m loan for MCR, to allow the conversion of the former St Bartholomew’s hospital (pictured) in Rochester. The 18-month loan will support completion of the project later this year. Former bosses at Man Group and Octopus Real Estate launched Silbury earlier this year, with a target to deploy £3bn over six years. The business, backed by funds managed by Oaktree Capital Management, provides loans of between £10m and £150m. It aims to meet new market demand as banks and alternative lenders pull back owing to uncertainty in the wake of the coronavirus pandemic. Founding partner Matthew Pritchard said: “The UK residential sector is one of our conviction calls, with its resilience since the start of the pandemic further endorsing our belief in the long-term fundamentals, with the ongoing critical shortage of suitable homes the most notable of these. “We are confident in the strength of the UK residential market and remain on track to reach our £400m lending target by year-end.” To send feedback, e-mail emma.rosser@eg.co.uk or tweet @EmmaARosser or @EGPropertyNews Photo © MCR Property