£13.75m short-term loan secured for Salford Quays residential development

Real estate fund manager, Frogmore, has secured a £13.75m loan to fund its consented residential site, Cotton Quay, in Salford Quays.

Specialist property lender Leumi UK agreed the short-term loan to refinance the 8.5-acre £365m waterfront site.

The development has hybrid planning consent for 1,493 Build to Sell residential units, 475 hotel beds, as well as 31,000 sq ft of ancillary commercial space.

Cotton Quay is a well located waterfront site, situated only two miles west of Manchester City centre in a major regeneration area where the market is currently experiencing need for more residential supply.

Knight Frank and Burgess Salmon acted for Leumi UK.

Chris Stallard, relationship director at Leumi UK, said: “This is a relatively large scale, complex site which required a good understanding of the market and the borrower’s strategy.

“Leumi UK’s expertise, combined with our flexible and commercial approach, helped us to deliver this deal within a swift timescale.

“Our longstanding relationship with Frogmore, as well as their own expertise and impeccable track record in fund and asset management, were key elements to our support, and we’re excited to see the plans evolve for the site as well as future opportunities to work with the client again.”

Andy Rogers, chief operating officer and group treasurer at Frogmore, said: “Cotton Quay holds a lot of potential and we believe it will help counter the residential supply/demand imbalance we’re seeing in the area.”

He hailed the deal with Leumi UK, saying: “Their ability to see the potential of the site and Frogmore’s wider business plan, coupled with a positive and commercial attitude enabled us to complete this deal with the minimum of fuss.”