A finance company is lending £18 million to a Brighton and Hove developer to build 37 flats in an eight-storey block on the seafront.
Paragon Development Finance said that it had “provided an £18 million finance package to 239 Kingsway Hove Ltd to support the development of a luxury residential apartment scheme in Hove”.
Work is expected to start on site on the scheme – a £30 million project known as Argentum – by the end of March.
After a 22-month build, the developer hopes that people will start moving into the flats in Kingsway, by the corner of Braemore Road, in the summer of 2024.
The original developer, Agenda Homes, and its chief executive Jamie Barratt, 51, applied for planning permission almost four years ago, in March 2018.
But neighbours objected to the plans to demolish three houses at 239 to 243 Kingsway and build 37 flats – most of them with two bedrooms.
Planning inspector Guy Davies said that the plans were in keeping with the nearest apartment blocks – Berriedale House and Braemore Court – both of which are also eight storeys high.
While the approved scheme will not include any “affordable” homes – reflecting in part housing associations’ reluctance to take on a small number of flats there – the planning permission requires payment of a “commuted sum”. This should fund two affordable homes elsewhere.
Agenda Homes has since sold the site to 239 Kingsway Hove Ltd, a joint venture between Cayuga Developments and the Housing Growth Partnership.
Cayuga Homes, is a Brighton and Hove business run by property developer Ed Deedman, 43, and his partner Tim Harding, 51.
Cayuga previously bought another scheme known as Aurum, at 189 Kingsway, on the corner of nearby Sackville Gardens, from Hyde.
The £28 million Aurum scheme is almost complete. It includes 52 flats, many of which have already been sold.
Paragon said that the £18 million loan was intended to help with the costs of buying the land for the Argentum scheme and developing the site.
The finance business added that the deal was led by senior relationship director Steve Mountain, with support from portfolio managers Darren Ellis and Jess Pilkington.
Mr Deedman, a director of 239 Kingsway Hove, said: “Argentum will complement the Aurum scheme perfectly.
“They have both been designed to be architecturally sympathetic to the local area and will both lift the Hove seafront.
“We’re excited to commence work on Argentum, which we believe will be as popular with buyers as its sister scheme given that we have successfully begun taking reservations already.
“Steve Mountain and the team at Paragon understood our requirements from the start. They were able to work with us in partnership to deliver important financing for this scheme and deliver what they said they would.”
Mr Mountain said: “We are thrilled to be working with Cayuga again.
“This development is in a great location, enjoying stunning seafront views but being close to the nightlife, great leisure facilities and renowned restaurants that this city has to offer.
“Brighton and Hove enjoys excellent transport links, so we feel Argentum will be popular with a range of buyers, such as downsizers, professionals and second home owners.”
A report submitted with the original planning application said that the scheme would bring economic benefits worth millions of pounds to the local area.
In addition to the temporary construction work over almost two years, the dozens of residents are expected to spend hundreds of thousands of pounds a year locally.
And the council should receive “new homes bonus” payments from the government worth about £230,000 – and more than £60,000 a year in council tax.
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