OakNorth has completed a £9m loan to Hayfield Homes to fund the development of two major residential schemes.
These developments are the first projects to be undertaken by the residential developer since it was founded in 2016 by former directors of the Banner Homes Midlands team.
The first site is located on Main Street, Tiddington, Stratford-upon-Avon, covers seven acres and will feature 32 new homes.
The scheme will comprise 26 houses, six flats, a new Home Guards Club and will be completed in two phases.
The second development is on a five-acre site in Banbury, Oxfordshire, and will consist of 43 new two- to five-bedroom apartments, with a total GDV of over £13m.
Planning permission for the project was secured from Cherwell City Council last month.
Ben Barbanel, head of debt finance at OakNorth, said: “With the average property in Banbury costing almost £300,000, and Oxfordshire’s population having increased by 50% over the last 30 years, the county is in desperate need of new homes.
“Hayfield’s experienced management team has the expertise and ambition to take both projects forward bringing some much-needed new homes to the regions and generating strong returns for their investors.”
Mark Booth, co-founder at Hayfield Homes, added: “These are our first projects since founding Hayfield in 2016, so it’s very exciting to have obtained planning permission and secured the capital needed to support the developments.
“Our investors Castlelake, who have over 20 years’ experience and a portfolio of almost $9bn [approximately £6.8bn], put their faith in us just like OakNorth and Reality Wealth have done.
“Their support has been invaluable and we are already speaking to them about another project in Worcestershire.”
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