Orascom secures loan for UK project
Financing has been secured for the first phase of the Garden Village development in Cornwall, UK, according to Orascom Development Holding, the initiator of the project.
UK-based Shawbrook Bank will finance the construction of the first phase of the West Carclaze Garden Village community project near St. Austell, Cornwall/UK, Orascom Development Holding (ODH) said. The first phase reportedly includes the construction of 296 homes. For this, Shawbrook has provided a maximum financing facility of 18 million pounds, ODH informs. In total, the bank could finance the construction of 1,500 environmentally friendly homes as part of the overall project.
Phase 1 will include 296 homes adjacent to two lakes, a 210-seat elementary school, community facilities and four miles of trails, according to plans. This will utilize nearly 200,000 sq. ft. of the land bank totaling 6.5 million sq. ft. The official groundbreaking took place in March.
The sale of the residential properties in the first phase is expected to start in June this year, while the sale of commercial properties will start in February 2021, he said. Completion of the properties is scheduled for the third quarter of 2024, and ODH expects total sales of around 82 million pounds (CHF 99 million).
The project is expected to be cash flow positive this year and profitable from 2022, ODH added. Estimated cumulative losses before break-even would be between 2 and 3 million pounds (2.4-3.6 million CHF) by 2022.
The major project is being developed by Eco-Bos Development, a joint venture between Orascom Development Holding (75% of the shares) and the industrial company Imerys (25%). The joint venture aims to develop a series of mixed-use residential and tourism projects in Cornwall on industrial sites owned by Imerys. The land bank is spread across six sites in Cornwall. (ah)
