Business & Economy
£17 million refinancing deal enables work on 37-home development in Gosforth
April 24, 2020
Lok Developments, part of Morton Group, has completed a £17 million refinancing deal for its up-market property development in Gosforth.
The news follows Newcastle City Council approving planning permission for 37 new homes on the former Sanderson Hospital site on Salter’s Road in Gosforth back in January.
Enabling work has already begun on site with Morton Group’s delivery arm, Kapex Construction, teaming up with Sadler Brown Architects to complete the landmark development by Autumn 2021.
The residential scheme will be called Sycamore Square and will feature 23 new houses and 14 apartments centred around a large green square near Gosforth High Street.
There will be a mix of four and five bedroom detached home as well as two bungalows, four bedroom townhouses and two bedroom apartments, with access via North Avenue.
Designs for the development, drawn up by award-winning Sadler Brown Architecture, were inspired by the local vernacular and the historical hospital context.
The new homes will be set around a central landscaped garden space created for residents, and will feature red brickwork, natural slate roofs and modern aluminium framed windows.
The 3-acre site was formally home to a Victorian children’s hospital founded by Newcastle philanthropist, W J Sanderson, but has been empty for almost 20 years.
It was bought by Lok Developments in June 2019 from the NHS with an unconditional offer.
Puma Property Finance and partners Mysing provided the investment with Weightmans, Burges Salmon LLP and CAPTIMA Ltd advising on the deal.
Gary Morton, group chief executive of Morton Group, said: “This £17 million refinancing deal represents a tremendous achievement by Lok Developments.
“It has taken a monumental effort from our team and our partners and it is an extremely positive sign of what can be achieved in the midst of a global crisis.
“We are grateful for the continued faith that our finance partners have in us, and we have great confidence in the development, location and future demand in the housing market.
“We would like to thank all our deal partners for their continued support and we very much look forward to releasing the first phase of homes through Sanderson Young Sales Agents very soon.”