£15.8 million development is expected to be completed by 2024.
Maven Capital Partners (“Maven”), a leading UK property and private equity manager, has raised £6.26 million to fund Oak Meadows, a new-build family home development consisting of 61 homes in Middleton St George, Darlington, in conjunction with Calmont Homes (“Calmont”).
The transaction includes a £1.76 million equity fundraise from Maven’s co-investor network, Maven Investor Partners, alongside a £4.5 million debt facility from TOC Property Backed Lending Trust PLC (“PBLT”), managed by Newcastle upon Tyne-based wealth management and property lending specialists, Tier One Capital (“Tier One”). This is the second transaction in eight months that Maven and Tier One have successfully concluded.
This is the latest project to be supported by PBLT, which recently unveiled its updated investment strategy to provide further funding support to the residential and commercial property sectors in the North of England and Scotland. The London Stock Exchange-listed investment company was founded more than four years ago and, in that time, has supported a strong pipeline of commercial and residential property developments, primarily in the North East and Scotland.
The site, which is located four miles from the large market town of Darlington, was granted planning permission in 2019, and the total development cost of the project is expected to be £15.8 million. Once complete, Oak Meadows will consist of a modern, bespoke development with three, four and five-bedroomed homes, ranging in size from 950 ft2 to 1,850 ft2.
Oak Meadows is the latest project that Maven has worked on in collaboration with Calmont. It follows its adaptive reuse of a vacant office building in Glasgow, which was transformed into a 137 bedroomed ibis Styles hotel; and the development of a purpose build student accommodation at 333 Bath Street, also located in Glasgow, which was subsequently sold for £7.45 million.
The UK housing market performed strongly during 2020 and has continued into 2021 despite the Covid-19 pandemic, driven principally by changes in customer behaviour and supported by government assistance schemes such as furlough and the stamp duty holiday. The outlook is similarly positive at a regional level with Savills forecasting 20% growth in house prices over the next five years in the North East.
Paul Johnston, Partner at Maven, said: “We are delighted to partner with both Calmont and Tier One again, having worked successfully with each of them on previous projects. This is a unique development in Middleton St George which I’m sure will be well received by home purchasers and we look forward to seeing the development progress.”
Ben Hall, Director at Calmont, said: “Thanks to this investment by PBLT, arranged by Tier One, we are able to bring high quality, bespoke family homes to this lovely tree lined site. The properties will be marketed through the well-established local agent Nick Carver.”
Brendan O’Grady, Fund Manager at PBLT added: “We’re really pleased to confirm this substantial funding for Calmont and Maven. We are delighted to have partnered with Maven again as we continue to provide our shareholders with investment opportunities presented by strong, credible and experienced management teams.
“There is a real vibrancy about the town following announcements of government departments moving to Darlington as part of the government’s levelling up ambitions alongside the well documented investment being made into Teesside Airport, which is generating great interest and attracting people to the area who will be looking for high quality modern homes.”View all news