Salford’s Cotton Quays developers commit to £13.75 million refinancing deal

The developers of a 1500 home development project in Salford has refinanced the site with a £13.75 million loan.

Frogmore, the developers of Cotton Quays, took out the short-term loan from specialist property lender Leumi UK, last week.

The refinancing represents a commitment to the massive 8.5-acre waterfront site in Salford Quays which was granted planning permission three years ago, but construction is yet to begin.

The new sky-scraping neighbourhood will provide 1,500 homes, two hotels, a lido, floating gardens as well as a huge climbing wall scaling the side of one building.

The complex will use the entirety of the dock adjacent to the current Ontario Basin and will be served by the Salford Quays metrolink stop.

Chris Stallard, Relationship Director at Leumi UK said: “This is a relatively large scale, complex site which required a good understanding of the market and the Borrowers strategy.

“Leumi UK’s expertise, combined with our flexible and commercial approach, helped us to deliver this deal within a swift timescale.”

Frogmore had claimed that construction would start this year, but there is still little sign of this on the ground so far.

Andy Rogers, Chief Operating Officer and Group Treasurer at Frogmore said: “Since our first deal with Leumi UK in 2012, we’ve found their customer-oriented approach to be invaluable. They are consistent and supportive regardless of market volatility.

“Cotton Quay holds a lot of potential and we believe it will help counter the residential supply/demand imbalance we’re seeing in the area.”

The project is not without opposition, however, with many citing the omission of any affordable housing and an over-gentrification of the already developed area.

We have the same issue at the Quays. A large 1200 flat development at Cotton Quay was passed in 2020. Zero affordable housing provision within it.

— Jonathan Moore (@JMooreSalford) March 25, 2023

Frogmore acquired the site from TH Real Estate for an undisclosed sum in 2018 and is part of the wider redevelopment of Salford Quays.