The facility will be used to purchase and develop the former care home in Nottingham into Millbeck House, a scheme consisting of 26 self-contained flats.
The development — which is expected to complete in May 2021 — will offer a mix of one- and two-bedroom properties with Help to Buy available.
This is the first scheme that Paragon has supported Hockley Developments on.
Anil Sehmi, Midlands-based regional relationship director at Paragon, said: “It is great to be able to support with funding for this scheme, as it aims to bring more much-needed housing to the East Midlands, particularly suited to first-time buyers with the availability of the Help to Buy scheme.
- CrowdProperty nears £100m lending milestone with 'big ambitions' ahead
- Paragon completes £2m loan for Epsom development targeting FTBs
- Paragon Bank provides £10m funding for Hounslow office-to-residential redevelopment
“Over the past few months, it has been our priority to support both new-to-bank and existing clients, so we are looking forward to hopefully continuing our relationship with Hockley Developments.”
Alan Forsyth, managing director at Hockley Developments, commented: “From the first phone call with the team at Paragon, I felt the service provided was right for us at Hockley Developments.
“The team has been very efficient and straightforward to deal with, and has always been available when required.
“[Paragon] has always been quick to meet us on site and understand our business, [and] we felt valued as a client very quickly.”
He added that Hockley had enjoyed working with Paragon and would hopefully continue to do so as they continued to grow over the next five years.