Paragon Bank’s Development Finance division has provided a £23.4 million funding package for two Midlands-based new build projects for Elevate Property Group.
The funding includes an £11.5 million finance package for the company’s development of 60 new build apartments on Homer Road, Solihull.
In addition, Paragon has provided an £11.9m funding package for the Phase II development of the company’s Trent Bridge Quays project in Nottingham.
Both deals were led on behalf of Paragon by relationship director Toby Burgess and portfolio manager Joshua Mann. The funding represents the third and fourth deal between Paragon and Elevate, following their funding of Priory House in Birmingham and Phase I of the Trent Bridge Quays project.
The fresh finance comes as Elevates completes payment on the funding provided for its Priory House scheme in the centre of Birmingham. The £13.3 million development loan supported the purchase and redevelopment of the former Birmingham forensic science laboratory, located in the popular Southside, to create 79 luxury apartments. The development is over 90% sold, with residents already moving in.
Imperial House on Homer Road will consist of a mix of one, two and three-bedroom apartments in the heart of Solihull, and within walking distance to the town’s train station, offering links to Birmingham and London. Construction has commenced and is due to complete in Autumn this year. Elevate has appointed Kavannagh Construction as the main contractor, their second deal with Kavannagh after Heaton House in Birmingham.
The Muller Yard will be a mix of 44 new build apartments and 14 townhouses, plus two commercial units, on the banks of the River Trent. Construction started in April and is due to complete in July this year. Elevate has selected Bode Contracting for the project, the company it has worked with on the Priory House development.
Steve Dodd, Managing Director of Elevate Property Group, said: “We’re excited about these two schemes. Trent Bridge Quays has been a great success and we look forward to bringing Phase II to market shortly. Meanwhile, Imperial House will be a fantastic addition to Solihull, benefitting those who work in the town, or who commute to Birmingham or London.”
He added: “We have developed an excellent relationship with Paragon and particularly Toby and Josh. They have been a supportive partner on the schemes on which we have previously worked together and I’m delighted they have backed these two exciting developments.”
Toby Burgess said: “Buyers like Elevate Property Group developments because they offer well-designed spaces with a much higher specification than is commonly seen. Both Imperial House and The Muller Yard are developments we are looking forward to seeing progressing, working with Steve and the team to deliver a great result.
“We’re also delighted to have been involved in the Priory House scheme, which has brought a landmark building back into use in the heart of a vibrant and up and coming part of the city. This was a great project to kick-off our relationship with Elevate and they have been hugely successful in delivering the scheme quickly despite the challenges in the construction market post-Covid and then achieving impressive sales allowing them to repay our facility in less than 21 months. A real success story.”
