The Oaktree Capital Management-backed lender agreed the 17-month facility at 70% LTGDV.

It will support Stonegate’s transformation of a vacant office block into 100 residential flats arranged over seven floors.

The scheme will include a mix of one-and-two-bed apartments and penthouses with panoramic views across Brighton and the coastline.

Some 25% of the homes are already reserved.

Gavin Eustace, founding partner at Silbury Finance, said: “Regional developers are the lifeblood of UK housing, a sector that remains one of our conviction calls given the structural undersupply dynamic.

“Despite the challenging backdrop, we will continue to fund well capitalised borrowers like Stonegate, which has a track record of delivering successful schemes across the South East.

“Furthermore, as a refurbishment rather than new development, the embodied carbon of this scheme will be greatly reduced, which aligns with our own commitment to delivering sustainable real estate.”

Jerry Hinds, founder and director of Stonegate Homes, added: “The construction works are progressing well, and we are aiming to deliver this first phase of the development in Q2 2023.

“The site is well located in the centre of Hove near Sussex Country Cricket Club ground, and we have had strong buyer interest in the site.

“We thank the Silbury team for their support on this project and look forward to working with them on future projects.”