OakNorth, the digital bank for entrepreneurs, has provided a £22.8m loan to support a joint venture between O’Shea Group and Galliard Homes.
The £22.8m loan will be used to fund the next stage in converting the historic 19th century, Raithwaite Sandsend Estate. Located between the North York Moors National Park and Sandsend beach on the outskirts of Whitby, the 85-acre site will see the development of 179 luxury villas, lodges and cottages.
This next phase follows the reimagining and reopening of the estate’s two hotels, Saltmoore House and The Beach House, in November 2024, totalling 78 rooms and suites.
Stephen Conway, Executive Chairman & Co-Founder of Galliard, said: “We look forward to welcoming guests to our new wellness-led sanctuary, located along the picturesque North East coastline. The Raithwaite Sandsend estate has a unique and extensive history, so it is our privilege to be breathing new life into the site, whilst preserving its historical significance to the region.
“OakNorth once again proved themselves to be a fantastic funding partner – we have worked with the team for years and keep going back as their flexibility, transparency, and entrepreneurial approach is second to none.”
Mark O’Connor, Investment Director at O’Shea, said: “Over the past six decades, we’ve become a respected name in the property industry, with our long-standing relationships with developers, housing associations, and local authorities leading to many successful joint venture partnerships.
“We were delighted to once again work closely with Stephen and the team at Galliard, with OakNorth being the clear funder of choice given their expertise in the sector and reputation for backing independent property developers such as ourselves.”
Damien Hughes, Senior Director of Property Finance at OakNorth, added: “This deal presented an exciting opportunity for OakNorth to support two of our long-standing customers with their latest JV project.
“The combination of the development expertise from both O’Shea and Galliard, alongside the well-renowned hotel management team that have been brought in, will no doubt be core reasons behind the project’s success. The location of the site and abundance of luxury offerings will also be a draw for not just UK staycationers, but international tourists too.”
