The development consists of one-, two- and three-bedroom flats, five of which will be for shared ownership.

Paragon aims to achieve an EPC A rating by incorporating solar panels on the roof as well as communal air source heat pumps, and mechanical ventilation with a heat recovery system.

Paragon’s green homes initiative intends to support SME housebuilders developing new domestic properties with the highest energy performance standards.

Under the scheme developers achieving an EPC A rating on properties will receive a 50% reduction on loan exit fees.

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The new development is minutes away from restaurants, bars, shops and parks in Bristol’s Old Market between Redcross Street and Old Market Street and is set to be completed in summer 2024.

This is Paragon’s second funding deal with the PG Group following a previous deal for the development of a seafront apartment scheme in Weston-Super-Mare.

Dave Gray, COO at the PG Group, said: “We are delighted to secure financing from Paragon for our new development situated in such a vibrant part of the city, and we’re proud to deliver high-quality apartments in a sustainable and responsible way.”

Toby Burgess, development finance relationship manager at Paragon Bank, added: “The apartments will be a fantastic addition to Bristol.

“We’re delighted to work with the PG Group again and our financing will support the firm in providing apartments with a strong EPC rating.”