• Transaction also supported by equity investment from the Housing Growth Partnership Bristol-headquartered property developer

The PG Group has secured a £6.5 million funding package from Paragon Development Finance, as well as an equity investment from the Housing Growth Partnership, to support its seafront apartment scheme in Weston-super-Mare.

The company’s Promenade House project will deliver 42 seafront one and two-bedroom apartments. Work on the conversion scheme, which has a Gross Development Value of £10.5 million, is well underway and is expected to be complete in the summer of 2022.

The PG Group acquired the building, which operated as the Somerset Legion Hotel from 2007 to 2020, from the Royal British Legion last year. The elegant building offers easy access to the beach thanks to its prime location on the waterfront promenade.

Many of the open plan properties have allocated on-site car parking and enjoy uninterrupted sea views to the front or pleasant residential countryside views to the rear.

The deal was led on behalf of Paragon by Relationship Director Toby Burgess, with support from Portfolio Manager Joshua Mann. Advisors included JLL, MDA Consulting and Brecher LLP.

Dave Gray, PG Group Chief Operations Officer, said: “We’re excited to be breathing new life back into this beautiful building, creating 42 seafront apartments. We want to maintain the external character of the building, whilst completely transforming the interior to create homes suited to modern living. We’ve recorded strong buyer interest in the scheme and we look forward to welcoming the first residents next summer.”

He added: “Paragon Development Finance and the Housing Growth Partnership are companies that we know can deliver. Toby, Arnaud and their respective teams understand what developers require and are easy to work with. We’re pleased to be partnering with them on The Promenade Scheme.”

Toby Burgess said: “The Promenade enjoys a fantastic location for those that want to live by the sea yet is only 30 minutes to Bristol by train and close to the motorway network. The PG Group has a great track record of delivering successful schemes and we are confident this one will follow suit.”

Arnaud de Blay, Housing Growth Partnership Investment Director, said: “I am pleased that the Housing Growth Partnership has been able to back the PG Group in re-developing the Promenade. The PG Group has a strong reputation and experience of delivering complex developments and I am sure that Dave and his team will work tirelessly to create high quality flats that fit such a unique seafront location.

The Housing Growth Partnership, which is backed by Lloyds Bank and Homes England, recently unveiled a new £300m fund for SME and regional housebuilders in the UK. The social impact investor said the new fund will support a range of housing tenures and will help it achieve its target of supporting the development of 10,000 new homes by 2025.

The PG Group was founded in 2002 and has developed a track record of delivering striking buildings in the South West, including The Eye and Number One in Bristol.

For further information contact:
Michael Clarke
Head of Media Relations
Tel: 07740090746

Notes to editors:
Paragon Bank provides competitive property development finance up to the value of £30 million across England and Wales. Paragon Bank Development Finance Limited is a member of the Paragon Banking Group which is a FTSE 250 group based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group has over £12 billion of assets under management and manages over 450,000 customer accounts. Paragon Development Finance Limited. Registered in England number 03901943. Registered office 51 Homer Road, Solihull, West Midlands, B91 3QJ.