Paragon Bank’s Development Finance division has provided a £15.9 million funding package to PfP igloo and Housing Growth Partnership (HGP) for the development of 78 environmentally friendly townhouses in Glasgow.
Located in the Port Dundas region to the north of the city, the townhouses will form the second phase of the Dundashill development, a 27-acre masterplan that sits at the heart of a new creative urban adventure neighbourhood on Glasgow’s canal.
The new properties, marketed for sale, will be equipped with a range of environmentally friendly features, including air source heat pumps, wastewater heat recovery, provision for self-installed electric vehicle charging points, and high-performance building fabric. The project has the ambition to meet the requirements necessary to be rated Gold by the Scottish Building Standards for carbon reduction and heat demand.
The completed development, a mix of three- and four-bedroom homes, will also be highly sustainable across the design process, using modular construction and building materials sourced from the local area.
A segregated cycle way, recently completed by Glasgow City Council and linking the site to Glasgow’s city centre and west end, will encourage healthy living habits and improve accessibility.
igloo, the BCorp developer acquired by PfP Capital in January 2023, will be responsible for developing the scheme, master planned by PfP igloo, a long-term partnership between PfP Capital and igloo Regeneration.
PfP Capital and equity investor Housing Growth Partnership (HGP), part of Lloyds Banking Group, announced earlier this year a joint venture (JV), to deliver residential-led urban communities across the UK, including the Dundashill development.
Funding for the development was led on behalf of Paragon by Relationship Director Toby Burgess, with support from Portfolio Manager Joshua Mann.
Commenting on the Dundashill development and Paragon’s support, Peter Connolly, CEO at igloo, said: “Dundashill is an excellent example of the low carbon, sustainable homes that should be a blueprint for the UK’s future housing delivery.
“Connected to local ecology, cycle and walkways and nearby amenities, it will provide residents with an ideal, environmentally friendly lifestyle. I am delighted that Paragon Development Finance shared our vision for Dundashill and I look forward to working with the team as the development continues.”
Commenting on Paragon’s support for Dundashill, Toby Burgess, Paragon Bank Development Finance Relationship Director, said: “Paragon is proud to support the first phase of Dundashill’s regeneration providing 78 energy efficient houses. This innovative project reflects Paragon’s commitment to supporting sustainability and we will be keenly following its progress in the months ahead. This is our first deal supporting PfP igloo and HGP and we have been hugely impressed with their attention to detail and passion for regeneration – we hope it is the first of many.”
Rachel Miller, investment director at HGP, added: “We’re very pleased to have secured funding from Paragon for Dundashill, it’s fantastic to be on site with this first scheme which epitomises the qualities of design, sustainability and local impact that are key to HGP’s wider partnership with PfP igloo.”
For further information contact:
Tom Frew
Media Relations Manager
Paragon
E: [email protected]
www.paragonbank.co.uk
Notes to editors:
Paragon provides competitive property development finance up to the value of £35 million.
Paragon Bank PLC a subsidiary of the Paragon Banking Group PLC which is a FTSE 250 company based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group PLC has over £14 billion of assets under management, helping more than 340,000 customers to achieve their ambitions.
Paragon Development Finance Limited. Registered in England number 03901943. Registered office 51 Homer Road, Solihull, West Midlands, B91 3QJ.
Paragon Development Finance Limited. Registered in England number 03901943. Registered office 51 Homer Road, Solihull, West Midlands, B91 3QJ.
HGP (Housing Growth Partnership) is an equity investor and part of Lloyds Banking Group (LBG). Backed by LBG and Homes England, HGP invests patient capital with the purpose of delivering social impact through partnership with selected residential developers and housebuilders to increase the number of homes being delivered and help those partners grow. HGP has a unique investment approach, which shares both risk and reward with partners.
Since 2016 HGP has supported over 7,500 new homes on over 100 sites. It can invest anywhere in the UK into multiple housing tenures, including family housing, apartments, build to rent, retirement living, student accommodation and more, with the flexibility to support partners through a variety of deal structures across the development lifecycle.
PfP Capital is a fund management business established by Places for People Group Limited. Its objective is to create a suite of residential funds, raising equity and investing in regeneration and rental property across all tenures including established PRS, Build to Rent, retirement and affordable homes. Leveraging Places for People Group’s expertise in placemaking, property management and measurable social value, Places for People Capital adds its own FCA-regulated fund management expertise to offer investors stable returns and ongoing value growth.
www.pfpcapital.co.uk
About igloo
igloo is a multi-award winning developer securing the supreme winner of the Housing Design Awards for its Malings scheme in Newcastle with PfP igloo. igloo also won the Government's Home of 2030 competition and is now delivering the winning designs for the Sunderland Housing Expo.
This year igloo also won the global UN Habitat Climate Smart Cities Challenge bringing its unique combination of delivery and financial skills to help deliver beneficial social and environmental system change.
www.iglooregeneration.co.uk