The development finance division of Paragon Bank is providing a £3.3 million loan to Litton Properties. The capital is earmarked for the construction of a seven-unit commercial park at Markham Vale in Derbyshire. The provision of the funds secures the delivery of the planned commercial buildings at this regional location.
First deal for specialised light industrial finance
This completion represents the first transaction successfully closed by Paragon Bank since the launch of its new lending product for light industrial properties earlier this year. The bank had specifically expanded its product portfolio to provide structured support for schemes across the light industrial, trade counter and commercial sectors.
With the project at Markham Vale, the financial institution is putting its strategic direction into practice. Demand for flexible warehouse and commercial units remains stable in the UK market, which is why financing for specialised trade parks forms a key element of the newly formed lending line.
Development at Markham Vale
The scheme by Litton Properties comprises seven functional units tailored to the operational requirements of trade occupiers and service providers. Markham Vale offers established logistics connectivity within Derbyshire for this purpose. Litton Properties is responsible for both the construction works and the subsequent letting of the site.
- —Financing volume: £3.3 million
- —Lender: Paragon Bank (Development Finance)
- —Borrower and developer: Litton Properties
- —Asset: Trade park with seven units in Markham Vale, Derbyshire
For Paragon Bank, the agreement provides proof of the viability of its new financing approach. Advancing the £3.3 million to Litton Properties marks an operational step towards continuing the planned expansion of its lending activities in the mid-market development sector.
The project in Derbyshire highlights the ongoing significance of regional commercial parks for local economic infrastructure. The scheme creates modern space capacity at Markham Vale that meets the demand for contemporary commercial premises in the region.
