Paragon Development Finance has provided a £5.32 million funding facility to support the delivery of a new £8.2 million residential-led development in Sheffield’s Kelham Island district.
The 22-month facility will fund Catherall Development’s Kelham Exchange scheme, comprising 43 private apartments and four commercial units on Acorn Street. The development has a gross development value of £8.248 million, with Paragon lending at 65% loan-to-value.
The scheme will deliver 31 one-bedroom and 12 two-bedroom apartments alongside commercial space, with construction already underway. Located in one of Sheffield’s fastest-growing neighbourhoods, Kelham Exchange is aimed at both owner-occupiers and investors seeking modern city centre accommodation.
Kelham Island has undergone significant regeneration in recent years, transforming from an industrial area into one of Sheffield’s most sought-after residential and leisure destinations.
RESIDENTIAL REGENERATION
The funding marks Paragon Development Finance’s first transaction with Catherall Developments, a regional developer specialising in residential regeneration projects across South Yorkshire and Derbyshire. Led by Matt Catherall, the business has delivered more than £50 million of residential property within Kelham Island over the past 18 years.
Craig Seaborne, senior portfolio manager at Paragon Development Finance, says: “Kelham Exchange is a well-located scheme in one of Sheffield’s most distinctive residential neighbourhoods.
“Kelham Island has seen significant regeneration over recent years and continues to attract demand from residents and investors seeking high quality, well-connected city living.
“We are pleased to support Catherall Developments on this project. Matt Catherall and his team have strong experience in the local market, with an established track record of delivering residential schemes in Kelham Island. This is exactly the type of experienced regional developer we are keen to support.”
FUNDING CERTAINTY
Matt Catherall, owner of Catherall Developments, adds: “Kelham Island is an area we know extremely well and we are excited to be bringing forward another high-quality development in the neighbourhood. Kelham Exchange has been designed to meet demand for modern, well-specified apartments in a part of Sheffield that continues to grow in profile.
“Paragon has taken the time to understand the scheme, the location and our track record in the area. Their support gives us the funding certainty to progress delivery and continue investing in Kelham Island.”
