Paragon Development Finance has provided an £8.8 million facility to Oakwood Group for a 51-unit residential project in Broughton, near Preston. The funds provided cover the acquisition of the plot on Garstang Road as well as the construction costs for the entire development. The project underscores both companies' commitment to creating much-needed housing in the Lancashire region.
The development will see the construction of 51 residential units, a significant proportion of which are designated as affordable housing. In total, 20 of the new units will be realised as affordable homes, which is intended to make an important contribution to meeting local demand. The strategic location in Broughton, just a few kilometres north of Preston, makes the project particularly attractive for families and commuters seeking good transport links combined with a rural living environment.
Details of the financing model
The financing provided by Paragon Development Finance covers essential phases of the project, from initiation to completion. This includes not only the costs for land acquisition but also the entire construction costs. Such comprehensive financing solutions are crucial for the realisation of large-scale residential projects, especially in a market environment characterised by rising material and labour costs.
The collaboration between Paragon Development Finance and Oakwood Group signals confidence in the development prospects of the Preston region. Oakwood Group is known for its projects that consider both quality and sustainability aspects. Paragon's financing enables the project to be implemented promptly and supply the market with urgently needed new homes.
Significance for the local housing market
The creation of 51 new residential units, including a substantial proportion of affordable housing, is expected to have a positive impact on the local property market in Broughton and Preston. Projects of this kind help to alleviate pressure on rental and purchase prices and allow a broader segment of the population to access high-quality housing. This is an important development to meet the ongoing demand for homes in this growth area.
- —Total number of units: 51
- —Proportion of affordable units: 20
- —Total financing sum: £8.8 million
- —Location: Garstang Road, Broughton, Preston
Real estate market experts view such financing as key to the continuous development of urban and semi-urban areas in the United Kingdom. It enables developers to realise extensive projects that would often not be feasible without significant external capital injection. The provision of funds by Paragon Development Finance underpins the importance of specialised financing providers in the project development sector.
