Paragon Development Finance has agreed a £37.1m facility to fund the final phase of a 110-home scheme in Cranleigh as lenders continue to back experienced regional developers delivering through a more complex market cycle.
The funding supports Phase 3 of the Amber Waterside development, led by Nicholas King Homes, with an anticipated gross development value of around £54m.
The scheme comprises a mix of houses and apartments, with just under half of the units allocated as affordable housing and already exchanged – providing early visibility on exit for a significant portion of the development.
The deal highlights the continued importance of structured funding for SME housebuilders, particularly where delivery risk, cost pressures and sales absorption all need to be carefully managed.
PHASED DELIVERY
Schemes of this scale increasingly rely on lender confidence in both track record and execution, with funding structures tailored to phased delivery and evolving timelines.
Located in Surrey, the development forms the final stage of a wider lakeside scheme, with homes targeting EPC ratings between A and B. The project also includes green space, parking provision and landscaped features, reflecting ongoing demand for family housing in well-connected regional markets.
Paragon’s ongoing relationship with Nicholas King Homes was a key factor in the transaction, marking its second development facility with the housebuilder. The lender is also supporting a separate scheme for the developer in Buckinghamshire, now nearing completion.
Repeat business with proven developers remains a critical route to deploying capital in a market where build costs, planning constraints and buyer affordability continue to shape delivery.
CONTINUED SUPPORT
Nick Bilsland, CEO at Nicholas King Homes, says: “Phase 3 of Amber Waterside represents the culmination of a carefully planned and thoughtfully designed development which has created a distinctive new community in Cranleigh.
“Paragon’s experienced team understand the challenges businesses like ours face, as well as the requirements of schemes of this scale, making them a strong funding partner.
“The bank’s continued support has enabled us to progress the final phase with confidence and ensure we deliver the quality and sustainability standards established across the wider site.”
HIGH-QUALITY SCHEME
Oliver Powlesland, senior relationship director at Paragon Development Finance, adds: “Amber Waterside is a vibrant, high-quality scheme that will make a meaningful contribution to local housing supply in Cranleigh, including a significant proportion of affordable homes.
“I have worked with Nicholas King Homes for many years and know the strength of their delivery capability. We are pleased to support this latest scheme’s completion with a funding structure tailored to its needs and timelines.”
As market conditions remain finely balanced, the ability to secure funding for later-stage delivery – particularly with a portion of units pre-sold – continues to be a key factor in keeping schemes moving through to completion.
