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OakNorth Bank completes £4.9m CBILS loan to North Yorkshire-based property developer for new rural housing development in Harrogate

OakNorth Bank – the UK bank powered by OakNorth – has completed a £4.9m CBILS loan to Church Farm South Stainley Developments Ltd which is led by the experienced team behind Fountainhead Ventures.

The capital will be used to complete a new high-spec residential development in South Stainley, Harrogate, consisting of seven four-bedroom and two three-bedroom homes. The units range in size from 3,296 sq.ft. up to 5,535 sq.ft. and each comes with its own garage, parking and large gardens with some spectacular views. Being less than an hour’s drive from the cities of Leeds and York, the homes are situated in a popular commuter area and demand for the units has therefore been high with eight of the nine already reserved. Recent house price data has revealed the neighbouring North Yorkshire district of Ryedale is England’s most in demand countryside location, with sales agreed up 63% over the past six months[1].

The  project is being led by the team behind Fountainhead Ventures – Andrew McMillan and his father, Stephen McMillan, and Tim Cartwright – who’ve been involved in high quality property development, project management and real estate consulting for over 50 years between them. The team have successfully completed several high-end property conversions both in the UK and the US, including barn to hotel conversions into single and multiple family homes.

Andrew McMillan, Managing Director of Church Farm South Stainley Developments Ltd, commented on the transaction: “As a result of more flexible working brought on by COVID-19, we’re seeing more and more families choosing to leave the hustle and bustle of the city and move further out where they can get more bang for their buck. This particular development benefits from a beautiful rural location with several local amenities, whilst still being less than an hour’s drive from two major cities. The OakNorth Bank experience wasn’t like any we’ve had with previous projects – it was notably faster, and we were invited to meet Credit Committee and discuss the project directly with the decision makers which was a refreshing, albeit slightly daunting experience!”

James Espley, Director Property Finance at OakNorth Bank, added: “Andrew, Stephen and Tim have a track record of successfully designing, building and regenerating commercial and domestic properties on both sides of the Atlantic, so we’re delighted to have worked with them on this project. With all but one of these new houses now reserved, we anticipate the development at South Stainley to be a huge success and look forward to supporting the team with future projects.”


[1] ZooplaRural markets boom amongst homebuyers in the wake of Covid-19, 21 Oct 2020

ENDS

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.

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 16,000 new homes and almost 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.

Contact

Tom Pavey-Smith, Associate Director – Growth & Communications: tom.pavey-smith@oaknorth.co.uk / press@oaknorth.co.uk / 0791 716 5588

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