Housebuilder Newett Homes has secured a £5.45m revolving loan facility from Paragon Bank to support the Yorkshire-based company’s new development in Huddersfield.
Newett has used the loan facility to purchase land on Wentworth Road in Emley. The facility will support the development costs of the residential scheme, which consists of 40 two- to four-bedroom homes, eight of which are affordable.
Newett will be able to borrow a total of £7.8m during the term of the agreement and a maximum of £5.45m at any one time.
Will Newett, chief executive of Newett Homes, said: “We have built a strong relationship with the team at Paragon, so we are pleased to have worked with the bank on our latest development, which will deliver high-quality family homes to the Emley area of Huddersfield. We’re excited to break ground on the scheme and look forward to welcoming the first residents next year.”
Paragon’s Simon Dekker added: “We focus on working with experienced housebuilders that deliver a quality product and Newett Homes fits that mould perfectly. The company specialises in properties that deliver that added touch, including properties designed to impress and quality finishing touches.
“Paragon is one of a handful of development funders that can offer a revolving loan facility. This supports the developer by reducing the amount of equity they need to put into a scheme upfront and enables them to use the sale of the initial tranche of homes to pay down the facility as and when they complete, recycling their equity over the course of the project. This can decrease the overall amount of borrowing required and, subsequently, the cost.”
Newett Homes expects to make a start on site next month with the first homes ready by autumn 2024.
