Strawberry Star has secured £75m of funding from Cheyne Capital for its mixed-use development, Lu2on.
The funding will finance construction of the first phase comprising 401 residential units, of which 60% are already sold.
Overall the entire scheme, which is expected to complete by the end of 2021, will create 877 residential units on a 6.8-acre site that was part of the former Vauxhall Motors factory in Luton.
It will provide a mix of one- and two-bedroom apartments and amenities such as private roof gardens and a 24-hour concierge.
Santhosh Gowda, chairman of Strawberry Star Group, said: “The development is supporting the regeneration of the area and contributing to the economic growth of the town.”
He added that the funding from Cheyne Capital showed “confidence in us as a developer and our vision for the scheme”.
Richard Howe of Cheyne Capital, added: “By transacting on this debt recapitalisation we have further demonstrated our ability to source and provide innovative financial solutions in an ever changing and challenging market. We were impressed with Strawberry Star’s track record as a developer in the UK property market.”
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