Paragon Development Finance surpasses £4bn lending milestone
The division has funded more than 900 development projects and financed 16,000 new homes across the UK.
Paragon Development Finance has surpassed the £4bn lending milestone as it marks eight years since being acquired by Paragon in 2018.
The division has funded more than 900 development projects and financed 16,000 new homes across the UK.
Lending growth has come from specialist sectors including purpose-built student accommodation (PBSA), build-to-rent, later living, pre-let commercial developments, care homes and light industrial.
The Green Homes Initiative has pledged £400m of lending for energy-efficient homes, offering borrowers a 50% reduction in loan exit fees for developments with higher energy performance certificate (EPC) ratings.
In the past financial year, schemes financed by Paragon in the North of England, including the North West, North East and Yorkshire and Humber, increased by more than 50% year-on-year.
Neal Moy (pictured), managing director of Paragon Development Finance, said: “This milestone is a reflection of the trust our customers, brokers and professional partners place in us, with more than half of new deals coming from repeat customers.
“Given the challenges of the operating environment, this is something we’re really proud to have achieved.
“We have stayed agile and committed to supporting experienced SME developers through long-term partnerships, as well as broadening our proposition to cater for a wider range of development schemes.”
Moy added: “We’re confident in the long-term opportunities lying ahead for the sector, both in residential and more specialist areas, and will continue to work with developers to provide the expertise and backing required to deliver the homes and buildings communities need.”
Nigel Terrington, CEO of Paragon Banking Group, said: “The Development Finance division has evolved significantly since joining the Group in 2018, building a strong track record not only in residential development finance but across a growing range of specialist sectors.
“Under Neal’s leadership, the team’s ability to identify attractive opportunities, develop deep sector expertise and support customers through changing market conditions has made it an increasingly important and resilient part of the wider Group – demonstrating the benefits of operating a diversified lending business.”
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