Paragon Bank

Paragon and Apollo Capital lend £8.5m for Grade II-listed conversion in St Albans

Paragon Development Finance and Apollo Capital have teamed up to provide an £8.5m structured finance facility for a residential development in St Albans.


The funding was needed by Foxley Group for the acquisition and redevelopment of a Grade II-listed former office in the centre of the city.

Foxley will develop 10 new-build houses on a car park at the rear of the property and convert the buildings —103 and 105 St Peters Street — into three additional homes.

103 will be turned into a four-storey, five-bedroom house measuring 5,700 sq ft and 105 will be converted into a pair of two-storey homes; one will have four bedrooms and will measure 2,549 sq ft, while the other will have three bedrooms and measure 1,706 sq ft.

The 10 three-storey mews houses at the back of the building will have allocated parking and each measure between 1,348 and 1,466 sq ft.

The 19th century buildings were occupied by a local accountancy firm for three decades but have been empty since 2014.

Paragon led the funding with a £7.8m senior finance facility agreed on a two-year loan term, while Apollo Capital backed the deal through mezzanine funding totalling £700,000 to provide additional support for the site purchase and associated development agreement.  

Both facilities were agreed on two-year loan terms.

Relationship director Adrian Reeves delivered the deal on behalf of Paragon Development Finance, working alongside Lee Cory, director at Apollo Capital.

Arc & Co — which introduced the deal to the lenders — was represented by asset finance adviser, Julian King.

Kevin Gregory, managing director at Foxley Group, said: “We are excited to restore this beautiful building back to its former glory and provide new homes in the centre of this vibrant cathedral city. 

“We have been interested in 103-105 St Peters Street for a while; it has huge potential, and I am sure will be popular with purchasers who want the benefit of a desirable location that’s within commutable distance to London. 

“Working with Paragon, Apollo Capital and Arc & Co made the whole process seamless. 

“They are all supportive organisations that fully understand the property development market and the needs of their customers.”  

Lee Cory, partner at Apollo Capital, added: “This redevelopment will reposition an incredible property in a strong local market. 

“This is our second project with Foxley, Paragon and Arc & Co., which all have a reputation for investing and developing high quality products. 

“The size and scope of this facility aligns with our appetite for funding new modern developments in key cities that are growing economically.”

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