£24m loan fires starting gun on Friar Gate Goods Yard scheme

Wavensmere Homes has secured a multi-million-pound loan, which will allow it to start work on the £75 million redevelopment of Friar Gate Goods Yard.

Octopus Real Estate has provided the developer with a £24 million loan, which will allow it to begin work on the project “without delay”.

The nationally significant mixed-use project will reanimate two landmark Grade II listed buildings into over 110,000 sq ft of commercial space, alongside 276 new build homes.

The funding agreement marks the second time Octopus and Wavensmere Homes have teamed up to deliver brownfield regeneration in Derby.

The lender provided a £22 million loan to facilitate the redevelopment of the former Derbyshire Royal Infirmary – off London Road – into the £175 million Nightingale Quarter, which is now in the final phase of construction.

Matt Brighton, commercial director at Wavensmere Homes, said: “Securing a £24 million loan facility to draw down from during construction will enable us to commence work without delay and deliver an uninterrupted development programme.

“Derby has become a hotbed of regeneration activity, with compelling socio-economic metrics that support our level of commitment and investment.

“Octopus Real Estate is a proven and trusted partner of Wavensmere, and we’re pleased to be working together on such a significant mixed-use scheme.”

Within a matter of weeks, work will commence on site to restore the 19th Century Bonded Warehouse and Engine House.

The two terracotta buildings will deliver a total of 111,275 sq ft of flexible offices, health and fitness space, a restaurant/café, together with a regional sales centre for Wavensmere Homes.

Extensive new areas of open space – including play areas and pocket parks – will also be created, in addition to the retention of a TPO tree buffer, to enhance the biodiversity of the site.

The elevated area adjacent to Friar Gate Bridge will become a new multi-purpose public realm and community space, with retention of some of the original railway arch facades.

New vehicular, pedestrian and cycle access will be created at various points around the 11.5-acre site, from Uttoxeter New Road, Great Northern Way, and Friar Gate, with the Mick Mack cycling route also to be extended.

Nick White, head of development origination at Octopus Real Estate, said: “At Octopus Real Estate, we always want to work with stellar developers who are aligned with our vision and values.

“Wavensmere has a strong reputation for delivering high-quality, sustainable homes to local communities by meticulously restoring heritage assets.

“We are thrilled to be working with this dynamic team again and look forward to watching the positive impact the re-birth of Friar Gate Goods Yard will have on the city of Derby.”

Matt said: “We are proud of how Nightingale Quarter has been received by the residents who live there, the wider local community, politicians, and regional and national commentators.

“Located a mile away across the city centre, Friar Gate Goods Yard is another unique and emotive restoration project that we are fortunate to have the expertise and resources to undertake.”

To view the plans for Friar Gate Goods Yard, visit http://www.friargatederby.com .