Close Brothers Property Finance has committed a £20 million revolving credit facility to housebuilder gs8 for a new residential development in Radlett, Hertfordshire. The project, known as Medburn Yard, is set to deliver 52 new homes with a gross development value of £47 million, marking the first collaboration between the two firms.
The financing will facilitate the development of a four-acre site that had previously stalled after its former owner entered administration. gs8 acquired the land out of receivership, demonstrating a commitment to revitalising dormant development opportunities. The Medburn Yard scheme will comprise 38 private and 14 affordable homes, ranging from one to four bedrooms. A notable feature of the development is the conversion of a Grade II listed barn, blending historical preservation with modern living.
In a move reflecting evolving buyer priorities, the homes will come with a zero energy bills guarantee for a minimum of 10 years, offered in partnership with Octopus Energy. This initiative aims to provide long-term cost savings for residents amidst ongoing economic uncertainty and rising household expenses. Additionally, planned amenities include a fitness centre, a DIY and reuse centre, a concierge service, and access to an electric car and bike club, promoting sustainable living and community resources.
The development has already garnered significant interest, with over 200 buyer enquiries received ahead of its anticipated late summer launch. This strong market response underscores the sustained demand for housing in desirable commuter locations like Radlett, particularly as government housing targets continue to face pressure. Phil Hooper, chief executive of Close Brothers Property Finance, highlighted gs8's approach, stating it sets "a new benchmark for sustainable housebuilding in the UK," proving popular even in a challenging sales market.
The structure of the revolving credit facility allows gs8 to draw down funds as construction progresses, providing financial flexibility. This deal comes at a time when developers are navigating a complex property market characterised by significant price variations across regions and an increasing buyer focus on value and operational costs. The integration of energy-saving guarantees and shared amenities represents a strategic shift by developers to offer propositions that address long-term affordability and environmental concerns.