“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”
– Adrian Reeves – Paragon Bank
Paragon Development Finance has agreed a £12.5m facility with SME developer BQ Properties (St Albans) Limited to fund a mixed-use scheme at 67-69 St Peter’s Street in the centre of St Albans.
The 22-month facility will support build costs, professional fees, marketing costs and interest across the construction period, enabling the delivery of 34 residential units alongside two ground floor and one basement commercial units. The scheme will be delivered by Boom Construction, the developer’s in-house main contractor.
On completion, the development will comprise a mix of one, two and three-bedroom apartments across two neighbouring plots, finished to a high specification and incorporating renewable energy technologies including air source heat pumps, photovoltaic panels and water waste heat recovery. The total projected gross development value is approximately £23.5m.
Located on St Peter’s Street, a prominent high street address, the scheme sits within walking distance of both St Albans City and St Albans Abbey railway stations, with direct services into London St Pancras in under 20 minutes. The M25 and M1 are both accessible within a short drive.
“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,” said Mark Quinn, director at Aldenham Residential.
“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.”
This is the second scheme Aldenham Residential has brought to Paragon, following the completion of Rosecroft Close, a nine-home development in Bovingdon. The facility is led on behalf of the bank by senior relationship director Adrian Reeves, with support from senior portfolio manager Lilly Sargeant.
“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,” Reeves said. “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. “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,” he said.
“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, rounded out the picture. “This is a complex, constrained town centre site, and our focus is on careful planning, coordination and quality delivery throughout,” he said. “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.”
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