Residential real estate lender Urban Exposure has provided £55m in acquisition and development debt for the redevelopment of the Shredded Wheat factory in Welwyn Garden City, Hertfordshire.
Plutus Estates is building 850 homes on the site with development manager ZM Land & Capital as development manager.
Some £41.1m was lent for the original site purchase while a further £13.9m is being provided in working capital.
The site was bought in late 2017 from Tesco, which had previously gained planning from Welwyn Hatfield Borough Council for 850 homes including up to 80 assisted living units alongside retail, commercial, and leisure uses.
Mike McMahon, partner at Urban Exposure, said: “London’s supply-demand imbalance continues to grow, locations such as Welwyn Garden City have an increasingly important role to play in offering affordable accommodation with convenient transport to the capital’s working districts.
“Redeveloping this landmark site will create a significant number of new homes and have a positive economic impact on the area so we are pleased to be playing our part.”
The site is next to Welwyn Garden City railway station.
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