The JV will target the delivery of up to 300 homes for sale along England’s south coast and is HGP’s latest investment under its Regional Growth Initiative (RGI) model. 

Alongside HGP, Paragon Development Finance has provided the JV with a £14.5m senior acquisition and development facility to support the delivery of the scheme.

James Hutchinson, investment director at HGP, said: “This JV alongside Cayuga is the latest demonstration of our continued commitment to providing SME developers with institutional equity support, to accelerate the delivery of much needed housing across the UK.

“This initial investment under our RGI provides a blueprint for how town centre retail assets can be regenerated to meet local housing demand, in a sustainable manner, and is closely aligned with our social impact objectives.”

The RGI was established with the purpose of providing a longer-term equity commitment to SME developers and housebuilders to help realise their growth plans.

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The RGI provides ambitious management teams with access to a pot of institutional equity to fund multi-site growth plans, allowing them to free up their own equity to invest into their growing businesses.

To date, £67m of the £300m of total equity invested by HGP has been under the RGI structure, supporting 11 SME developers and housebuilders to deliver 1,621 homes.

HGP, Paragon and Cayuga Homes previously partnered to deliver a seven-story residential scheme in Hove, Brighton.

Ed Deedman, director at Cayuga Homes, commented: “Cayuga are extremely proud of our new JV with HGP — we could not wish for better partners and the funding will secure the delivery of our company’s exciting pipeline of new sites across Sussex and beyond.”

Steve Mountain, senior relationship director at Paragon Development Finance, added: “This is an exciting scheme that will bring fresh energy into the centre of Worthing, creating a vibrant mixed-use space of residential homes, retail, and leisure.

“We have a strong relationship with Cayuga Homes having worked with them on two previous schemes — we look forward to seeing this project take shape in the coming months.”