Developer takes £18m loan to build Hove seafront flats
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.
The proposed seafront flats in Kingsway, Hove, on the corner of Braemore Road
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.
The application was refused by Brighton and Hove City Council in July 2019 but granted on appeal in late 2020.
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.
Work on the Aurum block of flats on the site of the old Sackville Hotel, in Kingsway, on Hove seafront, is nearing completion
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.”
Kingsway looking east from Hove Lawns from opposite the bottom of Berriedale Avenue
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 visualisation of the Argentum scheme on Hove seafront between Berriedale House and Braemore Court
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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Bitter people with poorly paid jobs will no doubt complain – what about affordable housing, not fair, blah blah blah. Get a better job or move to an affordable area. Same has happened in London, Manchester, Leeds and so on. Living in a desirable city comes at a cost. It’s boring hearing how everything should be affordable or free!
It’s not just bitter people with poorly paid jobs who could justifiably complain. For starters, land prices are ridiculous across much of London and the South East. Supply and demand are out of kilter, with demand coming from around the wealthy world. A civilised society provides housing for the poor and helps ensure their other basic needs are met, from health and care and welfare to having food on their plates and, of course, an education.
And besides, affordable housing isn’t really affordable round here. It’s not a problem the Council can solve by itself. Nor is it necessarily something any developer could solve, certainly not in isolation. Sadly, I have very little faith in this Government or the current Opposition to come up with the policies that will effectively tackle these issues.
It’s more boring listening to bitter old people like you, with no life, moaning online about something no-one is currently doing
I agree this should all be real affordable housing for working class Brighton residents not people with more money than sense not right is it
Henry
Nice comments victimising people.
Yes perhaps they should all get better paid jobs.
But if everyone did that, who is actually going to provide the vital services we need. Who will be left to serve in our shops, pull us pints, delivery our post, serve us food, sweep our pavements, empty our bins, drive our public transport. The list is endless, but of course you hadn’t considered the little people who do the stuff we rely on and expect.
Living in a desirable city comes at a cost, no it doesn’t, we left the Victorian era some time ago, your attitude stinks, if you want to spend your cash on over priced living accommodation that’s entirely your choice and more fool you.
It is so boring and predictable the self righteous always say ‘If you don’t like it find a better place’.
Well remember this, no matter how poor or rich people may be in life, we all end up equal in the end, burnt to ashes or six feet under.
Have a nice day…
I keep hoping the various new bigger buildings might help with our housing problems, but I fear they will be bought as an investment, or become second homes or holiday homes, or they will attract new people to move here who have been priced out of London.
I keep thinking how years of having a poorly-run Planning Department at the Council meant a generation of missed opportunities, with the more far-sighted developers driven away, contributing to the housing supply problems we have today.
There also seems to be this fantasy among some Councillors on the Planning Committee how developers shouldn’t be allowed to make a profit. Yet even the Council’s own scheme’s have to stack up financially. Why would anyone risk their own home, savings, reputation etc unless they can make a living from it?
It’s all much more tightly regulated than most people realise.
The problem is with these bigger schemes is they are tiny. Brighton needs a massive number of flats to be built before it makes a dent.
King Alfred was meant to be 2k flats, never built. Brighton marina was in the region of 3k flats, still nothing. So when a developer builds a 6 story 200 flat development, it means nothing. The people that moan about these developments don’t understand the benifts that come from building dense projects like these.
Better public transport comes in the fact you have thousands more people a day on a single bus route, so more busses are laid on which in turn makes it more appealing for everyone else. council rakes in a ton in tax due to flats being a lot cheaper to service. and the city benefits by having a larger number of adults spending money in local shops bars and restaurants.
Shame, this could be a great city but its been going down hill over the last 10 years because the council is obsessed with cars and bikes than making this city a better place to live
I’m surprised that people with the money to afford these flats choose to buy one with a balcony overlooking a dual carriageway. I imagine it will be Airbnb and 2nd home owners
AURUM is horrible. Too big, too wide, too fat, too greedy. I lived in Sackville Gardens half my life, but the place is blighted with this monstrosity on the bottom corner. The Sackville Hotel that preceded it was structurally compromised by developers and their builders and we end up losing heritage and have overdevelopments put in their place. WHY DO DEVELOPERS ARROGANTLY IGNORE LOCAL PLANNING DECISIONS? Because they are greedy and self-serving. Ruinous idiots.
This should be affordable.
Who can afford this. Nonsense
100k max for people who have lived in Brighton for 10+ years
Joke