Paragon Bank has provided a £4m facility to back a sustainable housing project in Nunhead, South London.
The funding from the development finance team will support the transformation of a Victorian villa at 41 Linden Grove into nine energy-efficient flats.
The scheme is being delivered by Tikari Works, which is a new client for the bank.
The 22-month facility covers the acquisition and development of 7,362 square feet of residential space.
Work passed completion in June and the first build drawdown report has already been received. Demolition of the current building is expected in the coming months.
Sales are set to begin in November 2026.
The development is designed to meet Passivhaus standards.
Features include triple glazing, high-performance insulation, heat pumps, mechanical ventilation with heat recovery (MVHR) systems, solar panels and electric vehicle (EV) charging points.
All units are projected to achieve an energy performance certificate (EPC) rating of A, qualifying the scheme for Paragon’s green homes initiative.
To meet the criteria, at least five private units must be built and 80% or more must have an EPC rating of A, with the rest at least EPC C.
The flats will range from one to three bedrooms, offering different layouts.
The site is located on the curve of Linden Grove, close to Nunhead Reservoir, and is near several rail and bus routes.
The deal was led by Steve Mountain, senior relationship director, with support from Olly Das, portfolio manager, on behalf of Paragon Bank.
Mountain said: “This is an exciting new partnership for Paragon. The developer’s commitment to Passivhaus standards and qualifying for our Green Homes Initiative aligns closely with our sustainability goals, and it’s what makes us especially proud to support the scheme. Nunhead is a vibrant, well-connected neighbourhood, and we anticipate strong demand for these high-quality, future-proof and unique homes.”
Ty Tikari, co-director of Tikari Works, said: “We’re thrilled to be working with Paragon Bank on this project.
“The team’s keen support for sustainable development is what stands them apart in the market, while their responsiveness throughout the funding process has been invaluable.
“41 Linden Grove encompasses our commitment to delivering homes that are not just beautifully designed, but also future-proofed for a low-carbon world and changing climate.”
Tikari added: “We believe the combination of thoughtful architecture, energy efficiency and enviable location will make these homes truly special.”
