The funding will assist with the acquisition of a site and its subsequent conversion into 57 residential apartments.
Specialist mortgage, savings and business finance provider Paragon Bank has provided an £11.8m funding package to commercial property investment and development company Equagroup.
The funding will assist with the acquisition of a site known as Ironbridge House in Hanwell, and its subsequent conversion into 57 residential apartments.
The West London development is a 28,000 square foot commercial and residential conversion, due to complete in January 2022.
This is the fourth deal that Paragon’s development finance team has supported over the past two and a half years, totalling 144 residential apartments.
Mike Tivey, director at EquaGroup, said: “EquaGroup has now worked with Paragon on a number of projects primarily as result of [its] competitiveness, proactive team and effective process when establishing and completing the funding process.
“For Paragon to maintain this approach in a period where COVID-19 has impacted lending across the market is a credit to [it] and demonstrates an understanding that the supply of quality, affordable homes must continue.”
Adrian Reeves, relationship director at Paragon Development Finance, said: “It’s great to support EquaGroup on another scheme, providing more affordable residential apartments to the market.
"In the unprecedented time we find ourselves in, being able to support our existing and new clients is only possible with the support of our highly experienced team and professional partners.”
Nick Holding-Parsons, co-founder of LEXI Finance, which introduced Paragon and EquaGroup, said: “LEXI Finance [is] delighted to support the completion of this project between Paragon and EquaGroup.
“The transaction became very complex as all parties adapted to the onset of government measures and the response to COVID-19.
"During this, Paragon not only stuck to [its] word with regards to the pricing and leverage of the original facility, [it] also showed great commerciality in the way [it] approached [its] decision making.”
