OakNorth Bank – the UK bank powered by OakNorth – has completed a £1.63m CBILS loan to Yellow Tree Capital to refinance existing debt and support the sale of a new residential scheme in Tunbridge Wells.
Yellow Tree Capital is a bespoke property finance firm specialising in investment and lending throughout London and the South East. It offers a variety of funding options and has a portfolio showcasing a wide range of project types. Its Nevill View scheme comprises of four four-bedroom detached houses in Tunbridge Wells, of which three are new build and one is a refurbishment. The scheme was scheduled to be marketed from March 2020 but due to the COVID-19 lockdown, no viewings were allowed so this was delayed. Since restrictions were eased earlier in the summer, the scheme has attracted a significant amount of interest, benefitting from being located in an affluent commuter town with direct rail services to London Bridge in 45 minutes.
OakNorth Bank has approved £1.1bn in new loans since 23 March, including over £400m through the British Business Bank’s Coronavirus Business Interruption Loan Scheme (CBILS) and Coronavirus Large Business Interruption Loan Scheme (CLBILS). Following the extension of the schemes last month, OakNorth Bank has been granted further allocation, so will be able to support even more businesses in the weeks and months ahead.
Commenting on the transaction, Jonathan Bateman, Founder of Yellow Tree Capital, said: “It is difficult to find homes built with this level of quality, in this location, at this price point. With the current stamp duty incentives, it makes these homes all the more attractive, so we’re grateful to the team at OakNorth Bank who moved quickly to ensure we could maximise on this opportunity.”
Damien Hughes, Senior Director of Property Finance at OakNorth Bank, added: “COVID-19 has changed the way people live and work with many families now choosing to live further out where they can get more space, but still be able to easily commute into the capital when needed. This makes the Nevill View scheme incredibly attractive as demonstrated by the significant demand it’s seen since lockdown restrictions were eased. The British Business Bank’s CBILS and CLBILS were launched to help strong businesses like Yellow Tree that have been adversely impacted by the pandemic, so we’re glad to be part of it and to be able to play our part in supporting them.”
Notes to editors
About the Coronavirus Business Interruption Loan Scheme (CBILS) CBILS is a demand-led scheme offering lending to smaller businesses with turnover of up to £45m. Invoice finance and asset finance facilities are available from £1k to £5m, while term loans and revolving credit facilities are available from £50k to £5m. The government makes a payment to cover interest and lender-levied fees under CBILS for the first 12 months. The scheme is due to close for new applications on 31 January 2021.
The Coronavirus Large Business Interruption Loan Scheme (CLBILS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and industrial Strategy (BEIS).
About OakNorth Bank plc
OakNorth Bank provides fast, flexible and accessible debt finance (from £500k to £50m) to fast-growth businesses and established property developers / investors. It has debt finance teams in London, Manchester, Bristol, Birmingham, Leeds and East Anglia.
Since its launch, the bank has:
• Lent over £4.6bn, directly helping with the creation of almost 16,000 new homes and more than 20,000 new jobs in the UK;
• Raised deposits from c.160,000 savers;
• Supported over 750 businesses across the UK with the debt finance to pursue their growth ambitions.
It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Visit www.oaknorth.co.uk for more information.