Paragon Development Finance has agreed a £12.5 million funding package with BQ Properties (St Albans) Limited to support a mixed-use development in St Albans town centre.
The 22-month facility will fund the delivery of 34 residential units, two ground-floor commercial units and one basement commercial unit at 67–69 St Peter’s Street.
The scheme, which has a projected gross development value of about £23.5 million, will be delivered by Boom Construction, the developer’s in-house main contractor.
The funding package will support build costs, professional fees, marketing costs and interest across the construction period.
Once complete, the development will comprise a mix of one, two and three-bedroom apartments across two neighbouring plots. The homes will include renewable energy technologies, including air source heat pumps, photovoltaic panels and water waste heat recovery.
The site is on St Peter’s Street, close to shops, restaurants and other amenities, and within walking distance of St Albans City and St Albans Abbey railway stations. Direct rail services connect St Albans City with London St Pancras in under 20 minutes, while the M25 and M1 are also nearby.
Mark Quinn, director at Aldenham Residential, says: “St Peter’s Street is a prominent and well-connected city centre location, and this scheme brings forward homes and commercial space in a way that aligns with and complements the existing urban fabric.
“We are pleased to be working with Adrian and Paragon again. Their support has enabled us to move forward and deliver the site with confidence, building on our track record of delivering well-located, design-led developments across Hertfordshire and the Home Counties.”
The St Peter’s Street project is the second scheme Aldenham Residential has partnered with Paragon on, following the completion of Rosecroft Close, a nine-home development in Bovingdon.
The latest facility is being led for Paragon by Adrian Reeves, senior relationship director, with support from Lilly Sargeant, senior portfolio manager.
Reeves says: “This is a well-located scheme in one of the South East’s strongest residential markets, built by a skilled and reputed developer with a proven delivery record.
“It is great to continue my relationship with Mark, Oliver, and their team. This latest facility has been intentionally structured to support the build through to completion, recognising the appeal of the location and depth of experience behind the project.”
The deal was introduced to Paragon by Mike Gaffney, director of GAP Funding.
Gaffney says: “Another successful transaction for our long standing and valued client relationship Boom Construction and funder Paragon, navigating a complex scheme, delivering a tailored funding outcome – an example of how the right structure of lender, intermediary and client partnership can deliver sustainable results.
“I would like to thank all directors, management teams, Mark and Oliver for their commitment, knowledge, experience and professionalism in securing this prime scheme.”
Oliver Clegg, managing director at Boom Construction, adds: “This is a complex, constrained town centre site, and our focus is on careful planning, coordination and quality delivery throughout.
“Working closely with Aldenham Residential and the wider team allows us to maintain programme certainty while delivering a scheme that responds to the constraints and opportunities of a live town centre environment.”
