The loan, secured by North Bay Group, is an initial advance against the land and will fund full development of the scheme including construction and fit out.

This scheme will deliver 75 beds, providing residential and nursing care, with all bedrooms fitted with private wet rooms. An EPC rating of A will be targeted.

Construction began in the first quarter of 2026 and is expected to complete in late 2027.

The deal — the first between Paragon and North Bay — was led by the former’s senior relationship director Adrian Reeves with support from senior portfolio manager Lilly Sargeant.

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“Delivering modern, fit-for-purpose care homes is critical to meeting growing demand in areas with an ageing population,” said Adrian.

“North Bay combines development expertise with an established operating platform, which is a strong foundation for schemes of this scale.

“We are pleased to support this first transaction, with more in the pipeline, and look forward to building on this relationship.”

Richard Hoggart, CEO at North Bay Group, added: “We are delighted to be working with Paragon Development Finance on this project.

“Their understanding of both the development and operational aspects of the care sector has helped create a funding solution that supports our ambitious growth plans, and we look forward to building on this relationship as we bring forward further schemes in the future.”