Paragon Bank supports property developers across the Midlands through £150m development finance

By Bridging Loan Directory 22nd January 2025

Paragon Bank’s Development Finance division lent nearly £150 million to developers and housebuilders in the Midlands last year, boosting much needed new homes across the region.

The team supported 16 projects throughout the region in the year to 30 September 2024 (Paragon’s financial year), including schemes in Birmingham, Coventry, Derby, Nottingham and Wolverhampton.

In terms of the split, £103 million was lent to developers in the West Midlands across 11 schemes, with £45 million financing five projects in the East Midlands.

Amongst the schemes supported were:

£32.5 million scheme in Birmingham for a 266-bedroom student accommodation scheme for Mercia Real Estate
£21.1 million funding for the second phase of Elevate Property Group’s Silk Yard Development in Derby
£5.4 million funding for a 34-unit scheme in Nottingham for Hockley Developments Ltd

Overall, Paragon Development Finance, which specialises in providing finance to SME housebuilders and property developers, recorded new lending of £511.9 million across the UK during the period.

Paragon has ambitions to grow its presence in the Yorkshire and Humber region. Karl Kent joined the bank last year from Shawbrook to spearhead its growth in the region.

Neal Moy, Paragon Development Finance Managing Director, said:

“We are committed to support more developers across the Midlands and, with our highly experienced team and the backing of a strong and profitable bank, we have the capacity and appetite to do so.

We were able to support a range of developments last year, from small high-end single digit housing schemes to large-scale projects to purpose built student accommodation.

The Midlands is a diverse region and boasts vibrant cities across the East and West, as well as other fantastic locations to live in some of the smaller towns and villages.

We look forward to working with more developers in the region during 2025 and we are committed to becoming the development funding partner of choice.”