The 30-month facility will support the acquisition of land and the development of 85 new homes as part of a major new residential project in Watford, known as Avenues.
The regeneration will transform more than 60 acres of land to the south of Watford General Hospital and Watford Football Club.
During phase one, which has a GDV in excess of £35m, it will create 62 private houses and 23 affordable homes.
Overall, the £450m Watford Riverwell project will take between 15 and 20 years to complete and will result in approximately 1,000 new homes, along with a retirement village, primary school and retail, commercial and industrial space, as well as other amenities.
- The need for development exit finance: 'Why wouldn't you want to be hedged against a changing market?'
- Paragon provides £6.5m funding package to replace derelict pub with new apartments
- Paragon grows development lending volumes by 16%
Andrew Storey, managing director of regeneration at Kier Property, said: “Watford Riverwell will transform the south of the town and we are delighted to be playing a key role in the scheme.
“This is an ambitious and impressive development that will regenerate the area from predominantly brownfield land, bringing new homes and facilities and broader economic benefits.
“Paragon has been a key partner, understanding our requirements completely and showing the expertise needed to progress the funding efficiently and within a tight timeframe.”
Simon Dekker, relationship director at Paragon Development Finance, added: “We’re pleased to be working with Kier Property and Watford Borough Council to be part of such an impressive development that will result in a significant amount of new homes and help transform an area in a sustainable manner and with a long-term view.”