Paragon funds £13.3m Chester care home development in first deal with North Bay Group

Paragon Development Finance has completed a £13.3 million facility with North Bay Group to fund the delivery of a new purpose-built care home facility in Chester.

The loan provided an initial advance against the land and will support the full development of the scheme on Boundary Lane, including construction and fit out.

Once complete, the scheme will deliver a 75-bed care home providing residential and nursing care. All bedrooms will be fitted with private wet rooms, with the development targeting an EPC A rating.

Construction began in the first quarter of 2026 and is expected to complete in late 2027.

The project is being delivered in a location underpinned by strong demographic demand. Cheshire West and Chester have a population of more than 370,000, with over a fifth of residents aged 65 or above, a proportion that is expected to increase further over the next decade – supporting ongoing demand for modern, high-quality care provision.

The deal was led by Adrian Reeves, Senior Relationship Director at Paragon Development Finance, supported by Senior Portfolio Manager, Lilly Sargeant.

It is Paragon’s first completed deal with North Bay, with a further scheme already approved and three additional opportunities progressing through the pipeline.

Adrian Reeves said:

“Delivering modern, fit-for-purpose care homes is critical to meeting growing demand in areas with an ageing population.

Chester and the wider Cheshire region demonstrate clear long-term demand fundamentals, supported by population growth and a rising proportion of older residents.

North Bay combines development expertise with an established operating platform, which is a strong foundation for schemes of this scale.

We are pleased to support this first transaction, with more in the pipeline, and look forward to building on this relationship.”

North Bay Group was established in 2007 and specialises in developing and operating high-quality care homes.

The SME developer now operates 48 facilities across the UK, totalling over 2,500 beds, having earned a strong track record in both delivery and long-term asset management.

Richard Hoggart, CEO at North Bay Group, said:

“This development represents another significant milestone for North Bay Group as we continue to expand our portfolio of high-quality care homes across the North of England.

Chester is a location with strong demographic demand and an increasing need for modern, purpose-built care environments.

With our fully integrated model of developer and operator we ensure we are developing highly sustainable care homes with renewable energy and Solar PV achieving a high grade EPC A.

This scheme is a strong example of our long-term commitment to delivering facilities in communities where demand for quality care continues to grow.

We are delighted to be working with Paragon Development Finance on this project.

Their understanding of both the development and operational aspects of the care sector has helped create a funding solution that supports our ambitious growth plans, and we look forward to building on this relationship as we bring forward further schemes in the future.”

Joanne Fogg, Managing Director, Highgate Care, added:

“The Chester development represents an exciting next chapter in Highgate Care’s continued growth and our commitment to expanding into areas where demand for high-quality residential, nursing and dementia care is increasing.

As we grow, our focus remains on delivering exceptional care environments that place residents, families and communities at the heart of everything we do.

Our ethos that ‘Kindness Is Key’ underpins every aspect of our homes, from the quality of care we provide to the welcoming and supportive environments we create.

We are looking forward to bringing that approach to Chester and providing a care home that will support local families for many years to come, while helping to address the increasing need for high-quality care provision across the region.”