Oakgate secures £9m to move ahead with Vangarde project

BANK Leumi (UK) has completed a £9m deal with property developers Oakgate (Monks Cross) as they move ahead with plans to develop the 30 acre Vangarde site at York.

The developers have planning permission for 500,000 sq ft of commercial floor space on the site making Vangarde the biggest of its kind in the city.

Additionally, planning permission has been granted for a 320,000 sq ft data centre for a global financial institution.

Construction of the data centre is expected to take two years and will generate 2,000 construction jobs.

Bank Leumi (UK) was introduced to Oakgate by their joint venture partner, Houltons of Hull.

Richard France, managing director at Oakgate Group, said: “This type of deal fitted very well with Bank Leumi’s specialist expertise in property finance.

“Unlike many other banks, they were willing and able to support this project and from a financing perspective, it’s been as straightforward as it could possibly be at the worst time in banking history. Credible and professional throughout, they have delivered exactly what they promised.”

Steve Cooper, Bank Leumi (UK) regional manager, added: “We look forward to supporting Oakgate as their plans progress for this major development which will bring huge benefits to the region.”

Leumi ABL, the asset-based lending subsidiary of Bank Leumi, recently announced it was entering the factoring market with the launch of a new brand Leumi Invoice Finance.

The new invoice finance division follows Leumi ABL’s purchase of the Charterhouse Commercial Finance client book.

Leumi Invoice Finance will supplement the current product range by offering invoice finance facilities to new start and growing businesses with a funding requirement of up to £750k.

Clients will be managed from the Brighton office of Leumi ABL with the creation of a new client management team.

Phil Woodward, managing director of Leumi ABL, said: “By launching Leumi Invoice Finance as a separate brand we can present a very clear offering to the market, knowing that our full asset based lending capability can then support clients as their business needs evolve.”