£4.7m loan boosts newly launched private equity-backed housebuilder
OakNorth Bank has provided a £4.7m loan to new SME housebuilder, honey, to support its maiden residential scheme.
Founded in October 2022 by former Avant Homes CEO, Mark Mitchell, honey is based at its recently opened Sheffield city centre HQ.
It has initially agreed to acquire two new developments in South Yorkshire and Derbyshire, set to deliver over 141 homes across both sites.
The business is also backed by private equity provider, Alchemy Partners, which specialises in investing in debt and equity special situations across Europe.
Subject to planning, the capital from OakNorth Bank will be used to support honey’s Derbyshire development, consisting of 50 two, three and four-bedroomed homes.
Located in South Normanton, the site will also include five affordable units and will feature 14 separate house types for buyers to choose from.
Mark Mitchell, founder & CEO of honey, said: “By launching honey, I can now start realising my vision for building new homes that will deliver a combination of style, substance and sustainability that will be unmatched at its price point.
“From our market research, we understand there is strong demand for high quality and high specification new homes in South Normanton, so, subject to planning, we will be very pleased to be able to provide exactly that for the Bolsover local community.
“Working with Damien and the team at OakNorth, we instantly realised their passion and ability to support the SME housebuilding community and they were highly transparent and communicative throughout the entire lending process.”
Damien Hughes, senior director of property finance at OakNorth Bank, added: “Since honey’s launch only five months ago, Mark has already overseen the opening of its new Sheffield HQ, while also bringing together highly experienced industry talent that looks set to create a refreshing approach to housebuilding.
“The South Normanton scheme is perfectly placed as a commuter location, making it ideal for young and growing families.
“SME housebuilders continue to play a vital role in local communities and economies, which is why we’re so thrilled to be able to support honey’s first-ever residential scheme.”
