Paragon Development Finance has provided a £4.5 million revolving finance facility to support the delivery of a new residential scheme by regeneration specialist igloo at Riverside Sunderland.
The funding will support the development of 34 new homes delivered across two phases. The scheme comprises a mix of two-to-four bedroom townhouses, maisonettes and apartments, designed to support healthy, low-carbon lifestyles and a strong sense of community. All homes are built using modern methods of construction and follow igloo's Footprint® process, which prioritises people, place and planet.
Riverside Sunderland is one of the UK's most ambitious urban regeneration projects, set to create three connected neighbourhoods with new homes, workspaces, leisure uses and public green space at its heart. Working in partnership with Sunderland City Council and Housing Growth Partnership, igloo is delivering a low-carbon city centre neighbourhood designed to set new standards for sustainable living and contemporary city life.
The first phase delivers 18 high-quality townhouses and maisonettes, forming the foundation of a new residential cluster at the heart of the Vaux neighbourhood.
These homes introduce contemporary city living to the site, with excellent access to green spaces, cultural venues and riverside walks. Phase two brings 16 apartments based on the award-winning designs from the government's Homes of 2030 competition.
All homes will be:
- Highly energy-efficient
- Adaptable and accessible
- Low in embodied and operational carbon
- Designed for community connection and long-term wellbeing
These concept homes demonstrate how sustainable design can be delivered at scale, helping Sunderland progress towards its net-zero ambitions.
The scheme is expected to meet Paragon Development Finance's Green Homes Initiative criteria, which incentivises developers delivering homes where at least 80% of private units achieve an EPC A rating, with any remaining homes meeting a minimum EPC C standard, by offering a 50% reduction on loan exit fees.
This marks the second development finance deal the FTSE 250 lender has completed with igloo, following its support for the award-winning Dundashill scheme in Glasgow, which has become a benchmark for sustainable urban living. Both schemes were led by relationship director Toby Burgess, with support from portfolio manager Joshua Mann.
"This is a landmark residential development within the ambitious Riverside Sunderland masterplan, transforming the former Vaux Brewery site into a vibrant, future-ready urban community," said Pete Conboy, project director at igloo.
"With Paragon and HGP's support, igloo is delivering 34 new and much-needed city centre homes, arranged across two carefully planned phases, each designed to create a new benchmark for sustainable and contemporary urban living."
Michelle Williams, project manager at igloo, pointed to the strength of the relationship with Paragon as a factor in moving the scheme forward. "Paragon has shown a clear understanding of and support for our approach and ambitions, and the team's support, particularly with its Green Homes Initiative, enables us to move confidently into delivery at this important site," she said.
Mike Murphy, investment director at HGP, set the deal in the context of the wider partnership with igloo. "Riverside Sunderland is the third investment through our Strategic Partnership with PFP-igloo, which is targeting the delivery of over 1,200 highly sustainable, eco-friendly homes across the UK's regional cities," he said.
"This development will create a real sense of place within Sunderland with striking designs and deliver much needed high sustainable homes within the city centre."
Toby Burgess, relationship director at Paragon Development Finance, said the deal builds on the lender's earlier work with igloo. "We are pleased to be supporting igloo once again following the success of Dundashill, and to play a role in the delivery of Riverside Sunderland," he said.
"This is a well-considered scheme with strong sustainability credentials, delivered by a developer with a proven track record in complex urban regeneration. The structure of the facility has been tailored to support the phased delivery of the homes, and we look forward to continuing our relationship with the igloo team as the development progresses."
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