This project is converting two Grade II-listed properties into more than 110,000 sq ft of commercial space alongside 276 new homes.

Work will soon commence on the Friar Gate Goods Yard in the centre of Derby, restoring the 19th Century Bonded Warehouse and Engine House. This asset has been derelict since 1972.

In addition to office space, the site will host a gym, restaurant and cafe and regional sales centre for Wavensmere Homes. Pocket parks and play areas will also feature in the site’s redevelopment.

The new homes will include 227 two and three-bedroom townhouses which will surround the two listed buildings, in addition to a four-storey apartment building containing 49 units. An EPC rating of A will be targeted for these residential properties.

Wavensmere Homes is working with Glancy Nicholls Architects and Pegasus Group on the project.

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“Securing a £24m loan facility to draw down from during construction will enable us to commence work without delay and deliver an uninterrupted development programme,” said Matt Brighton, commercial director at Wavensmere Homes.

“Derby has become a hotbed of regeneration activity, with compelling socio-economic metrics that support our level of commitment and investment. Octopus Real Estate is a proven and trusted partner of Wavensmere, and we’re pleased to be working together on such a significant mixed-use scheme”.

This is the second time Octopus Real Estate has worked with Wavensmere Homes to deliver brownfield regeneration in Derby.

The lender has previously provided a £22m facility to redevelop the former Derbyshire Royal Infirmary into the £175m Nightingale Quarter. This is now in the final phase of construction.

"Wavensmere has a strong reputation for delivering high-quality, sustainable homes to local communities by meticulously restoring heritage assets,” added Nick White, head of development origination at Octopus Real Estate.

“We are thrilled to be working with this dynamic team again, and look forward to watching the positive impact the re-birth of Friar Gate Goods Yard will have on the city of Derby."