Paragon Development Finance has lent more than £4 billion since it was acquired by Paragon Banking Group in 2018.
The lender said it had financed more than 900 development projects and 16,000 new homes across the UK during the eight-year period, predominantly working with SME housebuilders and specialist developers.
Residential development remains the division’s main business, but it has expanded into specialist sectors including purpose-built student accommodation, build-to-rent, later living, pre-let commercial developments, care homes and light industrial property.
Paragon has also committed £400 million of lending through its Green Homes Initiative to support the construction of energy-efficient homes. Borrowers can receive a 50% reduction in loan exit fees when developments achieve higher energy performance certificate ratings.
The development finance division has increased its geographical reach since Paragon acquired Titlestone Property Finance in 2018. In the last financial year, the proportion of schemes it financed in the North West, North East and Yorkshire and the Humber rose by more than 50% year on year.
Neal Moy (pictured), managing director of Paragon Development Finance, says: “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.
“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, chief executive of Paragon Banking Group, adds: “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.”
