Lok Developments, part of Newcastle-based Morton Group, has completed a £17million refinancing deal for its luxury property development on the site of the former Sanderson Hospital in Gosforth.
Newcastle City Council approved plans to develop 37 new homes on the former Sanderson Hospital site in Gosforth on 31 January 2020.
Enabling work has already started on site with The Morton Group’s delivery arm Kapex Construction and the landmark development, designed by Sadler Brown Architects, is due to complete in Autumn 2021.
The residential scheme, Sycamore Square, will create 23 new houses and 14 apartments centred around a large green central space near Gosforth High Street.
There will be a mix of four and five bedroom detached homes including two bungalows, four bedroom townhouses and two bedroom apartments, with access via North Avenue.
Designs for the development, drawn up by award-winning Sadler Brown Architecture, were inspired by the local vernacular and the historical hospital context. The new homes will be set around a central landscaped garden space created for residents, and will feature red brickwork, natural slate roofs and modern aluminium framed windows.
The 3-acre site was formally home to a Victorian children’s hospital founded by Newcastle philanthropist, W J Sanderson, but has been empty for almost 20 years. It was bought by Lok Developments in June 2019 from the NHS with an unconditional offer.
Puma Property Finance and partners Mysing provided the investment, and the deal team also included Weightmans, Burges Salmon LLP and CAPTIMA Ltd.
Gary Morton, Group CEO of Morton Group, said: “This £17million refinancing deal represents a tremendous achievement by Lok Developments. It has taken a monumental effort from our team and our partners and it is an extremely positive sign of what can be achieved in the midst of a global crisis.
“We are grateful for the continued faith that our finance partners have in us, and we have great confidence in the development, location and future demand in the housing market.
“We would like to thank all our deal partners for their continued support and we very much look forward to releasing the first phase of homes through Sanderson Young Sales Agents very soon.”