£6.5 million funding boost for landmark Weston development
- Credit: PG Group
The redevelopment of a landmark Weston building has received a huge £6.5 million funding boost.
Bristol-based property developer The PG Group is converting the Promenade House building into 42 seafront, one and two-bedroom apartments.
Now, it has secured a funding package from Paragon Development Finance, as well as an equity investment from the Housing Growth Partnership, to support the scheme.
Work on the project, which has a Gross Development Value of £10.5 million, is already underway and is expected to be complete next summer.
The PG Group acquired the building, which operated as the Somerset Legion Hotel from 2007 to 2020, from the Royal British Legion last year.
Dave Gray, PG Group chief operations officer, said demand had already been strong for the apartments.
“We’re excited to be breathing new life back into this beautiful building, creating 42 seafront apartments," he said.
"We want to maintain the external character of the building, while completely transforming the interior to create homes suited to modern living.
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"We’ve recorded strong buyer interest in the scheme and we look forward to welcoming the first residents next summer."
The building offers easy access to the beach thanks to its location, on the waterfront promenade.
Many of the open-plan properties have allocated on-site car parking and enjoy uninterrupted sea views to the front or pleasant residential countryside views to the rear.
The deal was led on behalf of Paragon by relationship director Toby Burgess, with support from portfolio manager Joshua Mann. Advisors included JLL, MDA Consulting and Brecher LLP.
Arnaud de Blay, Housing Growth Partnership investment director, said: "The PG Group has a strong reputation and experience of delivering complex developments and I am sure that Dave and his team will work tirelessly to create high-quality flats that fit such a unique seafront location."
The Housing Growth Partnership, which is backed by Lloyds Bank and Homes England, recently unveiled a new £300m fund for SME and regional housebuilders in the UK.
The social impact investor said the new fund will support a range of housing tenures and will help it achieve its target of supporting the development of 10,000 new homes by 2025.
The PG Group was founded in 2002 and has previously worked on high-profile buildings in the South West, including The Eye and Number One in Bristol.