Wavensmere Homes has secured a £20m development loan from the West Midlands Combined Authority (WMCA) for its Canalside South regeneration scheme in Wolverhampton.
The £150m redevelopment of the 17.5-acre former industrial site, which was established by City of Wolverhampton Council and Canal & River Trust, will see more than 530 new energy-efficient homes delivered.
Designed by Glancy Nicholls Architects, Wavensmere Homes received planning approval from City of Wolverhampton Council for the Canalside South project at the end of September 2024. Ground preparation works will commence on the city centre site imminently, followed by the four-year construction programme.
Richard Parker, mayor of the West Midlands, said: “It’s exciting to think that this huge derelict site – the size of 10 football pitches – will soon become a place where people can live, raise families and thrive. And schemes like Canalside South are not just about building homes, they rebuild communities – giving people places they can feel connected to and proud of.
“The investment announced today is significant because this scheme has a vital role to play in the on-going regeneration of Wolverhampton, providing hundreds of badly needed new homes, more than 100 of them affordable, within a stone’s throw of the city centre.”
Kieren Turner-Owen, associate director of property finance at Frontier Development Capital (FDC), which helped Wavensmere to secure the loan from WMCA, added: “Our focus is proudly on investing in the West Midlands, so we are thrilled to be selected as the debt funding partner for one of the region’s most high-profile regeneration schemes. With well over 500 mixed-tenure homes and complementary amenities, Wolverhampton Canalside South is an integral development for the revitalisation of this West Midlands city.
“Since agreeing our first deal with Wavensmere Homes five years ago, the company has accrued a reputation as one of the UK’s most prominent and impressive SME housebuilders. This new loan facility sits sweetly within our funding parameters and we could not be more excited to be involved with bringing about the transformation of such a key waterside development. Our focuses are aligned in regenerating complex brownfield sites, with Canalside South allowing our excellent relationship with the Wavensmere team to continue.”
James Dickens, managing director of Wavensmere Homes, said: “The agreement of this loan facility with FDC will enable us to start on site at Canalside South only nine months after we first unveiled the plans at UKREiiF. As a Birmingham-based developer, it’s great to be working with a leading local finance house that knows us so well.
“Our in-house team has a strong history of regenerating vacant land in the Black Country and we can’t wait to begin transforming this site into a landmark development the whole region can be immensely proud of.”
Stephen Simkins, City of Wolverhampton Council leader, added: “This project is fundamental to our brownfield first strategy, driving investment into the Green Innovation Corridor, and it will also fulfil a key objective of our Canalside delivery partnership with the Canal & River Trust. We are looking forward to work starting on site. Bringing life back to the redundant sites along our canal network is critical to boosting footfall into our city centre.
“As one of the largest new housing developments in the Midlands, Wavensmere’s £150m investment plans, supported by the council, Canal & River Trust and WMCA, will enable Wolverhampton residents to benefit from superb connectivity, amenities, and health and wellbeing opportunities at this wonderful heritage location.”
